ED Files First Chargesheet In IL&FS Case, Attaches Property Worth Rs 570 Crore Under PMLA

India Business

The Enforcement Directorate (ED) on Friday filed its chargesheet, in the Infrastructure Leasing & Financial Services (IL&FS) money laundering case.

Written By Digital Desk | Mumbai | Updated On:

The Enforcement Directorate (ED) on Friday filed its chargesheet, against Infrastructure Leasing & Financial Services (IL&FS) under the provisions of the Prevention of Money Laundering Act (PMLA) before a special court in Mumbai. It filed the chargeseet against members of Committee of Directors of IL&FS Financial Services Ltd (IFIN) Ravi Parthasarathy, Ramesh Bawa, Hari Sankaram, Arun Saha and Ramchand Karunakaran. The agency released a statement on the ongoing probe in the  Infrastructure Leasing and Financial Services Ltd case.

The statement said that it has provisionally attached bank accounts and immovable properties (residential and commercial premises) situated at Delhi, Mumbai, Chennai and Brussels (Belgium) held by them. The ED also attached various bank accounts and immovable properties held indirectly by Sivashankaran in the name of his family members and Group companies, under Prevention of Money Laundering Act, 2002. The ED said that the total value of provisionally attached properties is approximately worth Rs 570 Crore.

READ | Moin Qureshi PMLA Case: ED Arrests Businessman Sana Satish Babu In Connection With Money-laundering Probe. Details Here

ED cracks modus operandi of senior management

The ED noted that various members of senior management of ILFS Group had indulged in several commissions and omissions which led to illegal personal gains at the expense of the company. They indulged in criminal conspiracy with each other and promoters of various private entities and committed 'flagrant violations to the prudent and established norms' by sanctioning and doling out large amounts of loans to companies which were under financial stress and had previously defaulted on loans taken from IFIN. They also falsified accounts and have indulged in 'circuitous transactions to artificially boost their balance sheet' despite the actions causing more losses to the company. Through this method, they acted in criminal conspiracy with Sivashankaran and financed various companies of M/s Siva Group out of which Rs 494 Cr has been outstanding

During the Financial years 2015-16 to 2017-18, the financials of IFIN were showing a negative trend, however,  Performance-related pay, deputation cost, and commission of senior members of management increased significantly. The ED also found that shares of ILFS Limited were transferred to Employee Welfare Trust (EWT) at a very concessional rate. The Trust sold IL&FS shares, to various entities outside the group at a huge premium. The amount received was disbursed among employees and the senior management kept a huge part of it, despite the Trust being operationally in a loss. 

READ | IMA Ponzi Scam Case: Special PMLA Court In Bengaluru Sends IMA Founder-owner Mohammed Mansoor Khan To ED Custody

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