Chennai cops arrest kingpin of Rs 1 lakh cr scam

Ravi Parthasarathy

Chennai: The Economic Offences Wing (EOW) of Chennai Police has arrested Ravi Parthasarathy, the former chairman of Infrastructure Leasing & Financial Services Limited (IL&FS) Group, in the Rs 1 lakh crore scam, which triggered a liquidity crisis in the financial services market in 2018.

Parthasarathy was arrested on Friday in connection with a cheating and criminal breach of trust case filed by 63 Moon Technologies Ltd.

“The kingpin and the mastermind of the 1 lakh crore IL&FS scam Mr. Ravi Parthasarathy has been arrested by EOW in connection with Crime No.13 of 2020 dated 20.09.2020,” a statement issued by EOW Chennai said.

“The accused, Ravi Parthasarathy, is the former Chairman and Managing Director of the entire IL&FS Group. The IL&FS Group, which consists of more than 350 group companies, was used as a vehicle to perpetrate fraud by then management of IL&FS Group which was headed by the then chairman and MD-CEO Ravi Parthasarathy,” EOW added.

Later, a special court for cases under the Tamilnadu Protection of Interest of Depositors Act (TNPID) in Chennai ordered 15 days of judicial custody of Parthasarathy.

The scam at IL&FS came to light in 2018 after several group entities defaulted on repayments due to severe liquidity problems. Later, the government superseded the board of directors, which is now working on ways to revive the ailing group.

The Economic Offences Wing of the State police had last January arrested Ramchand Karunakaran, former managing director, and Hari Sankaran, former vice-chairman and director of ITNL, who were also cited as accused in this case.

 

NT Bureau