Infrastructure News

IL&FS arm booked by CBI for defrauding 19 banks of Rs 6,524 crore, ET Infra

MUMBAI: The CBI has registered a Rs 6,524-crore loan fraud case against IL&FS Transportation Network Ltd, a subsidiary of Infrastructure Leasing & Financial Services Ltd (IL&FS). The probing agency named former officials of the firm Karunakaran Ramchand, Deepak Das Gupta, Mukund Sapre and Dilip Bhatia along with unknown bank officials in the FIR. Investigators had searched their premises in Delhi, Mumbai and Gurgaon earlier this week.

It is alleged that the firm availed credit facilities from 19 banks, including Canara Bank, and defaulted on payment. The accused allegedly entered into a criminal conspiracy for misappropriation of loan money through diversion of funds, circular transactions between sister concerns, and misrepresentation of books of income and expenditure. The Central Bureau of Investigation started a probe in the case following a complaint by Canara Bank.

The company, incorporated in 2000, is the largest build-operate-transfer road asset owner in India and a market leader in transport infrastructure sector with presence in Metro, city bus services and border check posts.

The fraud came to light after the company’s accounts turned non-performing assets in 2018. A forensic audit indicated fraudulent activities of the firm’s then office-bearers. The audit further found that commercial papers were arranged to facilitate circular transactions between IL&FS group companies.

  • Published On Jun 3, 2023 at 08:12 AM IST

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