The Enforcement Directorate (ED) is planning to attach the assets of Ravi Parthasarathy, former chairman of IL&FS Group, and at least two other former directors.
By Anwesha Ganguly
The Enforcement Directorate (ED) is planning to attach the assets of Ravi Parthasarathy, former chairman of IL&FS Group, and at least two other former directors. The ED is also planning to attach assets of some of the larger defaulters to IL&FS Financial Services (IFIN). The total assets to be attached is likely to be valued at over Rs 1,000 crore, a senior official told FE.
“Over the next two to three weeks, the ED will issue orders for the provisional attachment Parthasarathy’s assets, including some properties in Mumbai and Delhi. The ED also plans to attach assets of former directors of IL&FS — Arun Saha and K Ramchand,” the official said.
The ED in June had arrested Arun Saha, former joint director, IFIN, and K Ramchand, former managing director, IL&FS Transport Network (ITNL). Some of their assets had been temporarily frozen thereafter, the official said.
The agency is likely to submit its report on IL&FS by the end of August.
The ED plans to attach some assets of the Siva Group, C Sivasankaran and the ABG Group, the official said. The ED began probing the financial affairs of the IL&FS group after the Serious Fraud Investigation Office (SFIO) filed a criminal complaint against former top management of the group in May.
In its probe report submitted on May 28, SFIO found that loans to the Siva Group by IFIN were given against inadequate security. The report also alleged that loans worth around Rs 190 crore extended to the group were used for evergreening previous loan facilities.
According to the SFIO report, the ABG group, which is currently undergoing insolvency proceedings, borrowed from IL&FS group entities and was involved in evergreening of these loan facilities. As per the SFIO report, the total facilities extended to the ABG group between 2010 and 2017 were over Rs 1,600 crore.
The financial irregularities in the books of IL&FS came into scrutiny last year after the company failed to fulfil short-term and long-term debt obligations to the tune of Rs 91,000 crore.
In October 2018, the former board of IL&FS was replaced by a government-appointed board led by Uday Kotak. The new board has since taken steps to resolve around Rs 20,000 crore worth of debt.