August 19, 2019

ED filed chargesheet in the IL&FS money-laundering scam

[ by Legal Era News Network ]


A charge sheet was filed in a special court of the Prevention of Money Laundering Act charging some senior management personnel of IL&FS alongwith Aircel founder C Sivasankaran.

The senior management personnel had indulged in various illegal activities such as commissions and omissions, leading to illegal personal gains at the expense of the company according to the charge sheet. According to the ED, these personnel had sanctioned and disbursed huge loans to companies that were already under financial stress and were defaulters on repayment of earlier loans taken from IL&FS Financial Services (IFIN).

The senior management had falsified the accounts and indulged in circuitous transactions. This was done allegedly to maintain the credentials of IFIN, to continue receiving high remuneration and to artificially boost the balance sheet of IL&FS group. However, this led to further losses.

Further, the senior management was also involved in criminal conspiracy with Aircel founder C Sivasankaran and had fraudulently financed various companies of Siva Group, of which Rs 494 crore remained outstanding.

The ED also found that the shares of IL&FS were transferred to the Employee Welfare Trust (EWT) at a very concessional rate and were then sold to various entities outside the group at a huge premium. The proceeds from the sale were distributed to employees. A lumpsum amount of the same however went to the senior management.

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