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Serious Fraud Investigation Office Arrests IL&FS Former CEO for Misconduct and Banking Fraud



Serious Fraud Investigation Office Arrests IL&FS Former CEO for Misconduct and Banking Fraud

New Delhi: On Saturday, April 13, the Serious Fraud Investigation Office (SFIO) arrested Ramesh Bawa, Ex-Managing Director and Chief Executive Officer of Infrastructure Leasing & Financial Services Limited (IL&FS). The arrest was made in connection with the ongoing probe into the commercial and financial affairs of the debt-ridden IL&FS and its group entities.

Ramesh Bawa was arrested on grounds of misuse of powers and carrying out fraudulent code of conduct in sanctioning and granting loans to entities which are not credit worthy, thus, leading the company and its creditors into wrongful loss. Moreover, besides these irregularities, the accused also executed the hiring process of a relative to the Company’s London office at a hefty pay roll.

The company is said to have a debt amounting Rs 90,000 crore with assets close to Rs. 1.15 lakhs, thus posing a risk to the financial system of the Country.  

Allegedly, pursuant to the NCLAT order for freezing his accounts, accused Ramesh Bawa transferred funds from his account to those of his wife and daughter.

Recently, on April 9, the National Company Law Appellate Tribunal (NCLAT) directed the debt-struck ILFS to furnish information pertaining investment made by pension and provident funds in its group firms and further sought details of the financial liabilities of those entities. Moreover, the Tribunal also ordered suspension of the Board of the Company and instead approved a Government petition, allowing a six-member Government Board to run the affairs of the Company.

The SFIO in recent times has carried out the arrest of over five people in connection with high-profile banking frauds.

Leasing & Financial Services Limited (IL&FS)
National Company Law Appellant Tribunal (NCLAT)
Serious Fraud Investigation Office (SFIO)

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