Serious Fraud Investigation Office (SFIO) on Saturday arrested Ramesh C Bawa, Ex-Managing Director and Chief Executive Officer of IL&FS Financial Services Ltd. (iFIN) in connection with the ongoing investigations into the affairs of IL&FS and its group entities.
Bawa has been arrested on the grounds of abusing his powers in IFIN through his fraudulent conduct and in granting loans to entities which were not creditworthy and caused wrongful loss to the company and its creditors.
It may be recalled that IL&FS Financial Services Ltd. had borrowings of around 17,500 crore from debt instruments and bank loans. Provident Funds, Pension Funds, Gratuity Funds, Mutual Funds, Public and Private Sector Banks, are among those who had invested in these debt instruments.