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Regular-article-logo Saturday, 20 April 2024

ED files charges in IL&FS case

First charge sheet by the enforcement directorate details roles of directors in the funds crisis

PTI New Delhi Published 17.08.19, 07:51 PM
Provisional order calls for attachment of bank accounts and immovable properties in Delhi, Mumbai, Chennai and Brussels

Provisional order calls for attachment of bank accounts and immovable properties in Delhi, Mumbai, Chennai and Brussels Picture: Prem Singh

The Enforcement Directorate has filed its first charge sheet in the IL&FS case even as it has attached assets worth about Rs 570 crore, officials said on Saturday.

A prosecution complaint or chargesheet has been filed under the provisions of the Prevention of Money Laundering Act (PMLA) before a special court in Mumbai on Friday.

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The chargesheet details the roles of the directors and others in allegedly perpetrating the funds crisis and alleges corrupt practices were adopted by them that led to financial bunglings.

The central agency also issued a provisional order for attachment of assets, under the PMLA, and attached bank accounts and immovable properties located in Delhi, Mumbai, Chennai and Brussels, Belgium.

The order said these assets, commercial and residential, are held by the committee of directors of IL&FS Financial Services (IFIN) — Ravi Parthasarathy, Ramesh Bawa, Hari Sankaram, Arun Saha and Ramchand Karunakaran.

Saha and Karunakaran were arrested by the agency in June.

The bank accounts and immovable properties held “indirectly” by Aircel founder C. Sivasankaran, in the name of his family members and group companies, have also been attached, they said.

The total value of the provisionally attached properties is worth about Rs 570 crore.

The Enforcement Directorate (ED) had filed a money laundering case in this incident in February this year on the basis of an FIR filed by the Economic Offences Wing (EOW) of Delhi Police.

The agency, in its probe and in the chargesheet, said the senior management of IL&FS indulged in acts of commissions and omissions leading to illegal personal gains to them at the expense of the company.

“In criminal conspiracy with each other and promoters of various private entities, they have, in flagrant violation to the prudent and established norms, sanctioned and disbursed huge loans to the companies which were already under financial stress and defaulted on repayment of loans earlier taken from IFIN, an IL&FS subsidiary,” the ED alleged.

The ED said in order to maintain the credentials of IFIN so that they could continue to receive high remuneration, the directors allegedly falsified the accounts and indulged in”circuitous transactions” to artificially boost the balance sheet of IL&FS group, whereas actually these illegal activities were leading to further losses to the group.

Meanwhile, IL&FS Engineering and Construction Company on Saturday said its company secretary and compliance officer Saheli Banerjee has resigned.

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