HomeBusinessRavi Parthasarathy, ex-IL&FS Group CEO, detained in Rs 1-lakh cr scam

Ravi Parthasarathy, ex-IL&FS Group CEO, detained in Rs 1-lakh cr scam

Today, the Economic Offences Wing (EOW) of the Chennai Police detained former group leader Ravi Partharasarathy in the suspected Rs 1-Lakh crore fraud. “The 1 lakh crore IL&FS scam Kingpin and Mastermind Mr Ravi Parthasarathy was detained by the EOO in connection with Crime No. 13 of 2020 on 20.09.2020,” the statement released by the EOW Chennai said.

Parthasarthy would stay in police custody for the next fifteen days and on June 14, EOW DSP Prakash Babu informed IANS News Agency that his bail request will come to the hearing.

The EOW Statement noted that Parthasarathy led the IL&FS Group, which had over 350 group companies, and was used as a ‘vehicle to commit fraud.’ He is accused of fraud, which harms the interests of the firm, its shareholders and its creditors.

63 Moons Technologies Ltd which lost Rs200 crore in a scam and many other depositors in the case in September 2020, and the police initiated action against him, filed a FIR against Parthasarathy and other depositors. He even asked for an anticipatory bail, which was previously refused by the High Court of Madras.

“It is possible for aggravated ITNL depositors and investors to submit their claims to EOW,” stated EOW. The IL&FS problem initially arose in July 2018, after a succession of financial commitments that the business failed to meet due to a liquidity issue. IL&FS had assets of more over 1.15-lakh crore at that time. IL&FS fell in August 2018 because of its default on obligations. For the previous 30 years, Parthasarathy had worked with IL&FS until he quit in 2018.

In their plea against Parthasarathy, the Government of India (GoI) had said: “For carelessness, incompetence, and deceiving the public, Ravi Parthasarathia and his team presented and led the public by portraying rosy financial situations. IL&FS camouflaged its financial accounts by disguising a significant inconsistency between its cash flow and its payment commitments. I also disguised complete cash shortages and obvious bad financial ratios.”

It owes banks and other creditors around Rs 90,000 crore as of March 2018. In October 2018 the government replaced the IL&FS board and installed a new board, including Uday Kotak as Executive Chairman

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