Former IL-FS chief arrested in Rs 1 lakh crore scam

Ravi was arrested from Parthasarathy at Chennai

An FIR was registered on the basis of a complaint by a company that lost Rs 200 crore

Chennai: The Economic Offenses Wing (EOW) of the Chennai Police has arrested Ravi Parthasarith, former head of Infrastructure Leasing and Finance (IL&FS), in a Rs 1 lakh crore scam.

The management of IL&FS Group used more than 350 of its companies to carry out the scam. The scam was carried out by IL&FS Group Chairman and MD CEO Ravi Parthasarith. The FIR was registered on the basis of a complaint by 63 Moons Technologies Ltd, which lost Rs 200 crore in the scam. Complaints of various depositors have also been registered.

An earlier application for anticipatory bail by Parthasarith was rejected by the Madras High Court. The department investigating commercial offenses said ITNL depositors and investors could file their claims before the EOW.

The IL&FS crisis came to light in 2018 when the company went bankrupt due to a liquidity crisis. The company then collapsed in August 2018 when it came to paying bonds to investors.

The company started as a road construction finance company. It was followed by 347 subsidiaries with a debt of Rs 91,000 crore. The NBFC simply deceived rating agencies, analysts and regulators by showing everything on paper. Fear spread in the financial markets when IL&FS started filing insolvency in paying institutions.