IL&FS Fin Services laundered Rs 5,000 cr of shareholder funds: ED to court

The ED claimed the group was being run as a "personal fiefdom" by directors, who indulged in enhancing turnover for ensuring better credit rating for group cos and also bonus-like incentives

The Enforcement Directorate Thursday told a court here that the IL&FS Financial Services (IFIN), a subsidiary of the crisis-hit IL&FS Group, alone has allegedly laundered over Rs 5,000 crore of shareholder funds.

In a remand application submitted to the special court here, the ED claimed the group was being run as a "personal fiefdom" by the directors, who indulged in enhancing turnover for ensuring better credit rating for group companies and also bonus-like incentives.

The ED filed the application a day after arresting IL&FS's former joint managing director Arun Saha and former managing director of IL&FS Transportation Networks Ramachand Karunakaran.