The Serious Fraud Investigation Office (SFIO) took former vice chairman Hari Sankaran into its custody, it is the first big arrest made by SFIO in Infrastructure Leasing and Financial Services (IL&FS) case.
SFIO in a press release on Monday said, “Sankaran has been arrested in connection with the ongoing investigations into the affairs of IL&FS and its group entities. He has been arrested on the grounds of abusing his powers in IL&FS Financial Services Ltd (IFIN).”
“He caused wrongful loss to the company and its creditors,” SFIO added.
The notice served to Sankaran read, “it has been revealed that for 14% of the loans outstanding to external parties as on September 30, 2018, the collaterals are not secured and for 21% of the loan outstanding to the external parties as on September 30, 2018, the security charge on the collaterals are not adequate. Some borrowers with outstanding loan amounts of over Rs 100 crore have become NPAs.”
It also said that IFIN had borrowings of more than Rs 17,000 crore from debt instruments and bank loans. Provident funds, pension funds, gratuity funds, mutual funds, public and private sector banks were among those that invested in these debt instruments.