A 1 lakh crore IL&FS scam involving Mr Ravi Parthasarathy who has been arrested by EOW in connection with Crime No.13 of 2020 dated 20.09.2020 by EOW Chennai. The IL&FS group which consists of more than 350 group companies. The FIR has been registered in connection with the complaint given by 63 Moons Technologies Ltd who has lost a sum of Rs 200 crores, EOW Chennai said, adding that complaints have also been received from various other depositors. The anticipatory bail petition filed by Parthasarathy was, earlier, dismissed by the Madras High Court.
SCAM AND LEGAL DEVELOPMENTS
The IL&FS crisis surfaced in July 2018, when the company began defaulting on its debt repayments due to a severe liquidity crisis. The company collapsed in around August 2018, when it started defaulting on bonds that came due to investors. The company, which started as a road construction financing company, had quietly grown to around 347 subsidiaries and amassed a debt pile of about Rs 91,000 crore by the time the crisis broke out in the group.
Government panel: In October 2018, the government set up a panel under veteran banker Uday Kotak to set the resolution process rolling in the IL&FS empire. Late last year, at the new board’s first AGM, Kotak said through a resolution the new board expects to recover at least half of Rs 90,000 crore debt on IL&FS books. That work is still in progress. The new IL&FS management has claimed to have addressed aggregate group debt of Rs 43,000 crore to date through the sale of assets and through other cash receivables.
SFIO: The Serious Fraud Investigation Office (SFIO), the Reserve Bank of India, the Ministry of Corporate Affairs (Union of India), the Registrar of Companies (RoC), the National Company Law Tribunal (NCLT), Mumbai, along with the Grant Thornton forensic report have made adverse findings against him.
RoC: The RoC has observed mismanagement and compromise in corporate governance norms, while there is another FIR registered by the EOW-New Delhi against Parthasarathy and Hari Sankaran under various sections of IPC.
Government findings: In one of the findings as available in online news, the GoI petition mentioned, “IL&FS had created a trust known as the Employee Welfare Trust which was used as an instrument to enrich its directors at the cost of the Company. The said trust was used to perpetrate a fraud on IL&FS and its group companies. The trust owned 12 per cent of IL&FS Limited. Ravi Parthasarathy and certain other senior IL&FS personnel were major beneficiaries of the Trust.”
The SFIO complaint, dated May 30, 2019, named Parthasarathy as the prime accused. The report mentioned that Parthasarathy was the key decision-maker in the IL&FS Group and used the group as
RBI: The RBI report, which it submitted on March 22, 2019, underlined that the major role in perpetrating the fraud and financial irregularity was played by Parthasarathy during his tenure as the Group Chairman. The report pointed out indiscriminate sanctioning of loans, flouting of RBI norms, fraudulent transactions to certain accounts, showing inflated numbers of subsidiaries, conflict of interests, and the concentration of power in the hands of few, which included Parthasarathy.
Add Comment