Mumbai: The Enforcement Directorate (ED), which is probing an alleged money laundering case at Infrastructure Leasing and Financial Services Ltd (IL&FS), suspects that at least ₹10,000 crore was used for purposes other than stated ones, according to two people with direct knowledge of the matter.
“A sum of ₹10,000 crore could have been routed or layered for other than their stated purposes," said one of the two people cited above, requesting anonymity.
“The Enforcement Directorate is already probing the role of former chairman of IL&FS, Ravi Parthasarathy, former vice-chairman Hari Sankaran, two subsidiaries and 18 others for allegedly siphoning off funds from the books of the IL&FS group of companies."
ED registered a money laundering case on 20 February based on an FIR by Economic Offences Wing (EoW) of the Delhi Police. The FIR alleges criminal conspiracy, funds diversion of ₹74 crore and is based on a complaint by Delhi-based Enso Infrastructure Pvt. Ltd.
“ED has already called the former directors of IL&FS for questioning. We are also examining the forensic report which has found that anomalies in funds to the tune of ₹13,000 crore. The anomalies include extending loans to companies flagged off by the risk assessment committee, instances of loans extended to related parties being written off and loans extended to one group company being used to pay off debt obligations of other companies," said the second person, also requesting anonymity.
On 20 February, Grant Thornton India Llp submitted its forensic report to the Uday Kotak-led IL&FS board, which highlighted 10 anomalies in the books of IL&FS and its group companies. A copy of the report has been reviewed by Mint.
The report is also being examined by Serious Fraud and Investigation Office (SFIO), which has submitted two interim reports to the National Company Law Tribunal (NCLT), highlighting financial irregularities and has pulled up the auditors of IL&FS group companies for not proactively detecting financial irregularities.
The forensic analysis highlighted so-called conflict of interest and having in-adequate risk assessment measures. A sum of ₹2,270 crore was given as third-party loans and was utilized to provide funds to group companies out of which a sum of ₹1,150 crore was given to IL&FS Transport Network or ITNL.
Loans worth ₹2,502 crore given to borrowers were used to pay off existing debt obligations of other group companies.
The forensic report also found conflict of interest in transactions worth ₹94 crore. Funds were extended to promoters or entities of companies that were linked to directors and senior officials of IL&FS. There are six potential conflict-of-interest instances, the audit found.