Advertisement
Wednesday, Dec 08, 2021
Outlook.com
Outlook.com

ED Conducts Fresh Raids In Mumbai In Connection With IL&FS Payment Default Case

The debt crisis at the infrastructure lender IL&FS came to light following a series of defaults by its group companies beginning September 2018.

ED Conducts Fresh Raids In Mumbai In Connection With IL&FS Payment Default Case
| File Photo
ED Conducts Fresh Raids In Mumbai In Connection With IL&FS Payment Default Case
outlookindia.com
2019-05-22T14:03:32+05:30

The Enforcement Directorate Wednesday carried out fresh searches in Mumbai in connection with its money laundering probe in the multi-crore IL&FS payment default crisis, officials said.

They said the residences and offices of at least four directors of the firm are being raided.

The central agency had first carried out searches in this case in February after it filed a criminal case under the Prevention of Money Laundering Act (PMLA).

The searches are aimed at collecting additional evidences and documents, they said.

The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018.

IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 91,000 crore.

The ED's case is based on an FIR filed before the Economic Offences Wing (EOW) of the Delhi Police in December last year.

Ashish Begwani, Director of Enso Infrastructures (P) Ltd, had filed the case against officials of IL&FS Rail Ltd for allegedly causing Rs 70 crore loss to his company by fraudulent means.

Begwani had alleged in his complaint that in August 2010, he was approached by two officials of IL&FS Transportation Networks Ltd and he had invested Rs 170 crore in IL&FS Rail Ltd, a special purpose vehicle for Gurugram Metro project, in order to take its 15 per cent shares.

"However, over a period of time, the complainant observed that the company is not performing profitably and funds are being misused," an EOW official had said quoting Begwani's complaint.

The ED will probe if funds generated illegally, in this case, were laundered to create illegitimate assets by the accused.

The crisis-ridden infrastructure conglomerate IL&FS group, once hailed as a pioneer of public-private partnership, has come under the scanner of multiple regulators, for alleged defaults related to financial disclosures and corporate governance.

(PTI)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Aung San Suu Kyi Verdict 'Disturbing' But Will It Change India's Equation With Myanmar?

Aung San Suu Kyi Verdict 'Disturbing' But Will It Change India's Equation With Myanmar?

While India has time and again appealed for rapprochement between the democratic forces and the military, it has continued to engage with the junta in Myanmar.

Church In India Cosying Up To BJP To Protect Its Interests

Church In India Cosying Up To BJP To Protect Its Interests

What has led to this change of heart over the past few years for the Church, long seen to be anathemic to the Sangh Parivar?

Ashes, 1st Test, Day 1 LIVE: England Tottering At 118/7

Ashes, 1st Test, Day 1 LIVE: England Tottering At 118/7

England have not won a Test match in Brisbane since 1986-87. Can Australia protect that record this time in the Ashes? Follow live.

Why AFSPA In Jammu And Kashmir Is Not Just A Defence Act

Why AFSPA In Jammu And Kashmir Is Not Just A Defence Act

Has the AFSPA become an ideological Act, a tool to revise Kashmir history? Many analysts believe so.

Advertisement