ED arrested First Leasing's former managing director Farouk Irani

He was arrested on under the provisions of PMLA

The Enforcement Directorate (ED) has arrested First Leasing former Managing Director Farouk Irani in a fraud case. The investigations revealed that Irani had been instrumental in cheating IDBI Bank of Rs 274 crore and SBI of Rs 248 crore. Nearly Rs 100 crore worth of loans were used by Irani for his personal benefits. He was arrested on Tuesday under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

First Leasing Company of India Limited (FLCIL) is a listed company, and it was originally promoted by A C Muthiah and Irani. FLCIL is a non-banking financial company (NBFC).

K S V V Prasad, joint director at Chennai Zonal office of the ED said: "Irani was arrested by ED based on the complaint filed by IDBI Bank to CBI BS (Banking Secuity and Fraud Cell), Bengaluru and a FIR against First Leasing Company and its key personnel, alleging a fraud to the tune of Rs 274 crore."

Money laundering case was registered by the Directorate of Enforcement, Chennai Zonal Office, Chennai against First Leasing Company of India Ltd., Chennai & others.

During the course of investigation under PMLA, it was also noticed that on the basis of a written complaint of SBI, another FIR dated January 8, 2016 had been registered by CBI, BS&FC, Bengaluru against the said company and its crore.

During the raid which resulted in name and in the trust key personnel for a case of fraud to the tune of Rs 248 crore course of Investigations, Simultaneous Searches were residential premises and the premises of his daughters, recovery of fixed deposits of about Rs 51 crore in his name of his wife, daughters & Irani family maintenance.

The investigation conducted Irani was instrumental in cheating the IDBI Bank to the tune of Rs 274 crores & SBI to the tune of about Rs 248 crore and had illegally enriched himself along with others in the said fraud.

The estimated proceeds of crime, enjoyed, used, dealt with and diverted for personal and family benefits by Irani, alone works out to around Rs 100 crore.