Probe reveals how IL&FS bosses showed fictitious profits for salary hikes

The former directors of IL&FS, who were also on the board of IFIN, drew a commission and sitting fees on the basis of these fictitious profits

The Serious Fraud Investigation Office’s (SFIO’s) first charge sheet in the Infrastructure Leasing & Financial Services (IL&FS) case has accused the former directors of the company and subsidiaries IL&FS Financial Services (IFIN) and IL&FS Transport Network (ITNL) of devising illegal strategies to overstate profits and, thereby, pay higher dividend to the holding company. 

“These fictitious profits were the basis for payment of higher remuneration and performance related pay to the management of IL&FS and indirectly to directors drawing their salary from IL&FS,” says the charge sheet.

The former directors of IL&FS, who were also on the board of IFIN, drew a commission