On April 1, SFIO, the investigative arm of the Ministry of Corporate Affairs had arrested former ILFS Chairman Hari Sankaran.
New Delhi: The Serious Fraud Investigation Office (SFIO) has arrested former IL&FS Financial Services Managing Director and CEO Ramesh Bawa in connection with ongoing investigations into irregularities across various group entities, sources said on Saturday.
On April 1, SFIO the investigative arm of the Ministry of Corporate Affairs had arrested former ILFS Chairman Hari Sankaran.
According to a source, both were arrested under section 447 of the Companies Act that empowers the agency to make an arrest for committing fraud.
Ramesh Bawa was arrested late Friday night in the national capital after the Supreme Court recently refused to extend relief of granting him bail from arrest. Sankaran is reportedly lodged in Mumbai’s Byculla district jail.
Bawa had resigned from his position in September 2018 after a series of defaults by IL&FS which sent tremors in financial markets. IL&FS Financial Services had borrowings of over Rs 17,000 crore from debt instruments and bank loans.
The Enforcement Directorate is also probing the alleged irregularities. In February, It had registered a case of money laundering against ILFS Rail Ltd, ILF Transportation Networks Ltd, Ravi Parthasarathy, Sankaran, and Bawa.