The Economic Offences Wing of the Tamil Nadu police arrested Ravi Parthasarathy, 69, former chairman of the IL&FS Group, in connection with the alleged cheating of a Chennai-based private limited company to the tune of Rs 200 crore through its subsidiary IL&FS Transportation Networks India Limited (ITNL), Mumbai. Mr. Parthasarathy was arrested by the police in Mumbai and brought to the city on Thursday. He was produced before the Special Court for cases under the Tamil Nadu Protection of Interests of Depositors (TNPID) Act and remanded to judicial custody for 15 days. He has been lodged in the Saidapet sub-jail.
Former Non-Executive chairman of Infrastructure Leasing & Financial Services (IL&FS) Ravi Parthasarathy was arrested in Chennai on Friday by the Economic Offences Wing (EOW)-II. A statement from EOW-II said he was arrested in a case registered in September last year, while calling him a "kingpin and the mastermind of several crore IL&FS and ITNL financial scam"
The economic offences wing (EOW) of the state CID police unit arrested Ravi Parthasarathy, former founder and CEO of Infrastructure Leasing and Financial Services (IL&FS), in a Rs 200-crore cheating case in Mumbai on Wednesday. He was brought to Chennai by plane and was remanded in judicial custody on Thursday by a city court till June 24. IL&FS Transportation Networks Limited (ITNL), a sister company of IL&FS, was also named in the case.
Grant Thornton Bharat's forensic investigation into IL&FS Engineering and Construction Company Limited (IECCL) — the erstwhile Maytas Infrastructure Ltd — has revealed a wide range of activities bordering on fraud, manipulation and misappropriation. Grant Thornton Bharat's (GT) forensic audit report has alleged that executives at IECCL manipulated revenues, misrepresented facts in the financial statements, refused to write off assets that had gone bad, reversed interest claims recorded in the financial statements, manufactured claims to increase profits, manipulated fixed assets and ignored whistleblowers. "The new IL&FS Board decided to appoint GT to conduct forensic audits on some group companies with the purpose of unearthing financial irregularities; finding fraudulent transactions and wrongdoings by the erstwhile management and assess its impact on the ongoing resolution process," an IL&FS spokesperson said.
At a time when the country is facing its worst health crisis and governments and organisations are looking to provide support to citizens and employees respectively, Mother Dairy Fruit & Vegetable Pvt Limited — a wholly owned subsidiary of National Dairy Development Board — has announced a voluntary retirement scheme for its employees, offering a maximum of Rs 20 lakh to eligible employees.
Bank of Maharashtra, one of the public sector lenders which are being reportedly considered for privatisation, is pinning hopes on substantial recoveries from its non-performing assets, which will add to its profitability. A S Rajeev, MD & CEO of the bank, says the ongoing Covid wave will not have a major impact on the lender. BoM earned a net profit of Rs 165 crore in the January-March quarter. The bank has recovered Rs 508 crore from the toxic account of Bhushan Power and hopes to get another cheque of almost the same amount from IL&FS soon. In an interaction with ETBFSI, A S Rajeev, MD & CEO of Bank of Maharashtra, said he does not see a major impact of the second wave for his bank. He also mentioned that they are seeing notable results of end-to-end digital lending platforms which they have created
Scars of September 21, 2018, or India's financial services sector's Black Friday cannot fade easily. Two major housing financiers — Dewan Housing Corporation and India-bulls Housing — saw over 55 per cent single-day crashes in their stock prices caused by fears of redemption in the debt market. That brought to fore that India's then largest non-banking finance company (NBFCs) — Infrastructure Leasing and Financial Services (IL&FS) — was neck-deep in crisis calling for a swift government intervention. With over Rs 1 trillion of loan due to mainly banks and mutual funds, preventing a systemic contagion was top priority. Nearly three years later, banker Uday Kotak, chairman of IL&FS's reconstituted board, is relieved that the aftermath was largely contained. Appointed on October 1, 2018, Kotak and his seven-member team was inducted to resolve the defunct lender's mammoth loan burden.
The new Board of Infrastructure Leasing and Financial Services (IL&FS) on Thursday revised the aggregate debt recovery estimate by the group to Rs 61,000 crore, or about 62 percent of overall debt of over Rs 99,000 crore as of October 2018. "The group has also enhanced its estimates of aggregate debt recovery to Rs 61,000 crore—an increase of Rs 5,000 crore over its earlier estimate," said Uday Kotak, Chairman of the board of IL&FS. The new board that took over the crisis-hit infrastructure group two and a half years ago, had earlier estimated a recovery of Rs 56,000 crore.
The government-appointed board of troubled Infrastructure Leasing and Financial Services (IL&FS) expects to resolve about 60% of the entity's outstanding dues of around Rs 1 trillion by the end of this fiscal
Crisis-ridden Infrastructure Leasing & Financial Services (IL&FS) on Thursday said it has addressed aggregate group debt of Rs 43,000 crore so far and expects to cross Rs 51,000 crore by September 2021. The debt-laden group has further enhanced its estimates of aggregate debt recovery to Rs 61,000 crore beyond September 2021. In October 2020, IL&FS had targeted to address Rs 50,300 crore of its overall debt by March 2021 and over Rs 56,000 crore by FY22. The group's overall debt stood at Rs 99,000 crore, as of October 2018. "The total money owed by IL&FS to financial creditors was Rs 1lakh crore (including non-fund based exposures).