SFIO narrows on five IL&FS firms for fund diversion, mismanagement

The 5 firms constitute for more than 50% of the entire group's revenue and may have diverted funds in projects that were worth Rs 300 bn

The Serious Fraud Investigation Office (SFIO) has narrowed on five arms of Infrastructure Leasing & Financial Services (IL&FS) that may have been involved in fund diversion and mismanagement, the Economic Times reported on Wednesday.

Indian government took control of the debt-laden IL&FS last week after defaults on a string of debt obligations triggered wider concerns about risks in the country's financial sector.

The five companies under SFIO probe are IL&FS Transportation Networks Ltd, IL&FS Financial Services Ltd, IL&FS Energy Development, IL&FS Tamil Nadu Power and IL&FS Engineering and Construction Company, the paper said.

The five firms constitute for more than 50 per cent