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ED arrests two former IL&FS executives for alleged money laundering

These are the first arrests in this case by the Enforcement Directorate

Press Trust of India  |  New Delhi 

IL&FS
IL&FS

The on Wednesday arrested two former executives in connection with its money laundering probe in the IL&FS alleged financial irregularities case, officials said.

They said former joint MD of the company Arun K Saha and MD of network K Ramchand were arrested late evening in under the Prevention of Money Laundering Act (PMLA).

These are the first arrests in this case by the

The two will he produced before a special court in on Thursday, they said.

The central agency had filed a money laundering case in February this year and had twice raided a number of former executives in order to obtain additional evidence.

The debt crisis at the infrastructure lender came to light following a series of defaults by its group beginning September, 2018.

IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over 91,000 crore.

The ED's case is based on an FIR filed before the Economic Offences Wing (EOW) of the in December last year.

Ashish Begwani, Director of Enso Infrastructures (P) Ltd, had filed the case against officials of IL&FS Rail Ltd for allegedly causing 70 crore loss to his company by fraudulent means.

Begwani had alleged in his complaint that in August 2010, he was approached by two officials of IL&FS Networks Ltd and he had invested 170 crore in IL&FS Rail Ltd, a special purpose vehicle for Gurugram Metro project, in order to take its 15 per cent shares.

First Published: Wed, June 19 2019. 21:50 IST
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