The Chennai Police's Economic Offences Wing (EOW) today arrested former Infrastructure Leasing & Financial Services (IL&FS) group chief Ravi Partharasarathy in the alleged Rs 1-lakh crore scam. "The kingpin and the mastermind of the 1 lakh crore IL&FS scam Mr Ravi Parthasarathy has been arrested by EOW in connection with Crime No.13 of 2020 dated 20.09.2020," said a statement issued by EOW Chennai.
Parthasarthy will remain in police custody for the next 15 days, and his bail plea will come up for hearing on June 14, EOW DSP Prakash Babu told news agency IANS.
The EOW statement said Parthasarathy was heading the IL&FS group that comprised more than 350 group firms, and they were channelised to as a "vehicle to perpetrate fraud". He's accused of indulging in fraud that hurt the interests of the company, shareholders and creditors.
63 Moons Technologies Ltd, which lost Rs 200 crore in the fraud, and various other depositors had lodged an FIR against Parthasarathy and others in the case in September 2020, following which the police took action against him. He had even applied for an anticipatory bail, which was rejected by the Madras High Court earlier.
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"Aggrieved depositors and investors of ITNL can forward their claims to EOW," the EOW said. The IL&FS crisis had first appeared in July 2018 after the company defaulted on a series of debt obligations due to a liquidity crisis. At that time, IL&FS had assets worth more than Rs 1.15-lakh crore. In August 2018, IL&FS had collapsed as it defaulted on bonds. Parthasarathy had been working with IL&FS for the past 30 years before he left in 2018.
The Government of India (GoI), in its petition against Parthasarathy, had said: "Ravi Parthasarathy and his team were responsible for the negligence, incompetency and misleading the public by presenting and leading the public by presenting rosy financial states. IL&FS was camouflaging its financial statements by hiding a severe mismatch between its cash flow and payment obligations. I was also hiding total lack of liquidity and glaring adverse financial ratios."
As of March 2018, it owed over Rs 90,000 crore to banks and other creditors. The government in October 2018 superseded the board of IL&FS and appointed a new board, with eminent banker Uday Kotak as its executive chairman.
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