MUMBAI: Two former top executives of the crisis-hit lending firm IL&FS have been arrested by the Enforcement Directorate in connection with the agency's probe in the money laundering case.
Former Joint Managing Director of IL&FS financial services Arun K Saha and Managing Director of IL&FS Transportation Network K Ramachand were arrested Wednesday evening.
Sources in the Enforcement Directorate say IL&FS Financial Services undertook various circuitous transactions through multilayering and floating of multiple bogus or shell companies to launder funds. A large chunk of the money was laundered through ILFS road arm ITNL and its subsidiary ILFS Rail.
Infrastructure Leasing & Financial Services, a major infrastructure financing and construction company, has a total debt of Rs. 91,000 crore and has been trying to sell its assets to repay debt after several defaults forced the government to overhaul its management. The debt crisis at the infrastructure lender came to light after a series of defaults by its group companies from September last year.