Former Managing Director and Chief Executive Officer of Infrastructure Leasing and Financial Services (IL&FS) Limited was arrested on Saturday by the Serious Fraud Investigation Office (SFIO).
Ramesh C Bawa was arrested in connection with the ongoing investigation into the affairs of IL&FS and its group entities.
Bawa's arrest is on the grounds of abusing his powers in IL&FS through fraudulent conduct and in granting loans to entities which were not credit-worthy. This resulted in a wrongful loss to the company and its creditors.
IL&FS Limited had borrowings of around 17,500 crore rupees from debt instruments and bank loans.
Provident, Pension, Gratuity and Mutual Funds, and Public and Private Sector Banks, are among those who have invested in debt instruments. (AIR)