Mumbai : The Serious Fraud Investigation Office (SFIO) on Monday arrested Hari Sankaran, former managing director and vice-chairman of Infrastructure Leasing and Financial Services, in connection with ongoing investigations into defaults at IL&FS and its subsidiaries last year. Sankaran abused his powers in granting loans to IL&FS subsidiaries, which were not credit-worthy or were declared as non-performing assets (NPAs), the SFIO said in a statement released after his arrest. "It may be worth noting that IL&FS Financial Services Ltd had borrowings of more than ₹17,000 crore from debt instruments and bank loans. According to its two interim reports to NCLT Mumbai, SFIO found that the practices followed by IL&FS flouted the prescribed banking and lending norms. SFIO has also found the auditors of IL&FS subsidiaries negligent in detecting financial discrepancies.

Source: Mint April 01, 2019 16:38 UTC