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ED quizzes ex-Maharashtra CM Manohar Joshi's son in IL&FS fraud case

BusinessToday.In     August 20, 2019

The Enforcement Directorate grilled former Maharashtra chief minister Manohar Joshi's son Unmesh Joshi in connection with the IL&FS case in Mumbai on Monday. Apart from Joshi, the agency also grilled Maharashtra Navnirman Sena (MNS) chief Raj Thackeray in the case.  Both of them were summoned last week in connection with loans and equity investment of Rs 860 crore made by cash-strapped IL&FS in the projects of its company, Kohinoor CTNL.

Kohinoor CTNL, which has been constructing Dadar's Kohinoor Square towers, was founded by Joshi and Thackeray and their business partner Rajan Shirodkar. Joshi reached at the ED's Ballard Pier office at noon and was questioned for around 7 hours.

Also read: IL&FS case: ED summons MNS chief Raj Thackeray; to question exit from defaulter firm Kohinoor CTNL

He was questioned regarding the diversion of the borrowed loan funds from IL&FS. While leaving the ED office, he said, "We are co-operating with the investigation. They will inform me when to come again for questioning. Everything went well".

Additionally, Thackeray has been asked him to join the investigation again on August 22, Thursday. MNS members called the ED's move--a political vendetta by the ruling BJP. Commenting on the issue,  sitting CM of Maharashtra Devendra Fadnavis  said, "I came to know about the summons from media and had no idea about it. There is no vendetta behind it and if they are innocent and not involved in any irregularities they don't have to worry".

The ED is probing IL&FS' investment and shareholding in the Kohinoor building, in which Raj Thackeray along with Rajan Shirodkar and Joshi made a deal of Rs 421 crore. The probe has revealed the IL&FS group had invested Rs 225 crore in the company, following which, in 2008, the company surrendered its shares for only Rs 90 crore and booked a loss. The same year, Thackeray sold his shares and exited the consortium.

Furthermore, IL&FS advanced loans to Kohinoor CTNL that they allegedly failed to repay. In 2011, Kohinoor CTNL sold some commercial-residential premises to IL&FS and settled Rs 500 crore pending loan amount. Following this, IL&FS lent another Rs 135 crore to Kohinoor CTNL on which it defaulted. IL&FS top officials are under investigation for debt defaults of over Rs 91,000 crore.

Also read: IL&FS may not have disclosed bad loans for 4 years: RBI report

Also read: IL&FS crisis: ED files first chargesheet in the case; attaches assets worth Rs 570 crore

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