IFIN violated RBI norms to help Sivasankaran pay off IFCI loan: SFIO

The management of IL&FS then allegedly colluded with Sivasankaran to create a unique structure

The Serious Fraud Investigation Office (SFIO) has said the senior management of Infrastructure Leasing & Financial Services (IL&FS) violated several Reserve Bank of India (RBI) norms to help Chennai-based businessman C Sivasankaran pay off a loan taken from IFCI when he was already a defaulter of IL&FS Financial Services (IFIN), a subsidiary of IL&FS.

Sivasankaran was in the need to settle his outstanding accounts with IFCI and release his Chennai land mortgaged with the non-banking financial company (NBFC), the SFIO said in the charge sheet filed with the Special Sessions Judge (Companies Act) in Mumbai against 30 entities and individuals including