ED questioning former top officials of IL&FS; puts overseas firms under scanner

After conducting raids on IL&FS offices at multiple locations on February 20, the Enforcement Directorate (ED) has now begun calling former officials of the company for questioning. The former group chief financial officer Maharudra Wagle was the first to be questioned on February 22.

Around a hundred overseas companies of the IL&FS group are still under the ED’s scanner.

A source close to the development told Moneycontrol, "We have started calling officials of IL&FS for questioning. Today we have called group chief financial officer of IL&FS. Starting next week, we have summoned all former officials who headed the company at that point of time.”

The ED had on February 20 registered a case against former top officials of IL&FS, including its former Chairman Ravi Parthasarathy, under the Prevention of Money Laundering Act (PMLA). The investigating body carried out raids at various offices of IL&FS, including its BKC, Mumbai office, and at premises of the former officials.

Another source said, "IL&FS has around a hundred companies situated overseas that are also under the scanner of Enforcement Directorate. These companies have been incorporated jointly with the relatives of officials. These investments have now been red flagged by the Ministry of Corporate Affairs."

According to the FY2018 balance sheet, IL&FS had a domestic debt of around Rs 91,000 crore. The overseas debt is roughly Rs 4,969 crores.

The ED is also looking into real estate investments of IL&FS. The Ministry of Corporate Affairs (MCA) has made a list of properties owned by former senior officials of IL&FS, including some that were constructed by builders IL&FS had lent to. This has raised suspicion of a quid pro quo arrangement.