The Serious Frauds Investigation Office (SFIO) is understood to have arrested Ramesh C Bawa, former chief executive (CEO) of IL&FS Financial Services (IFIN), who had switched off his phone and vanished after the Supreme Court of India dismissed his petition challenging the SFIO’s powers to arrest him.
Sources in the know told us that Mr Bawa was holed up with a friend and tracked down towards midnight by questioning his family members.
was the only publication
to report that Mr Bawa had gone missing and had switched off his phone. As we reported on 11th April, Mr Bawa lives at Greater Kailash Part 1 in New Delhi. On enquiring at his home landline number, we were told that he was not at home. The person who answered the call, passed the phone to ‘madam’ , who we assume was his wife. She informed us that she was unaware of Mr Bawa’s whereabouts and that she had no idea if he had plans for any other legal action. When Moneylife
tried calling Mr Bawa on his mobile number, it was indeed switched off.
Sources say the agency will now follow the laid down procedure and he may be brought to Mumbai for further questioning.
The SFIO, which is probing the Infrastructure Leasing and Financial Services Ltd (IL&FS) fraud, had issued summons to several former senior executives of IL&FS, including Mr Bawa. As much as 90% of the loans advanced by IFIN, the lending arm of the infrastructure conglomerate IL&FS have turned bad. Interpol notices have been issued against all the key members of the management cabal that worked closely with Mr Ravi Parthasarathy, founder of IL&FS, who ruled the 346 company conglomerate with unfettered powers and pliant boards for over 25 years.
IL&FS vice chairman, Mr Hari Sankaran, is already in SFIO custody. However, the founder and past chairman Ravi Parthasarathy has not been touched on humanitarian grounds since he is undergoing treatment. However red cornor notices have been issued against him too and he is no longer allowed to go to London for treatment.
As reported by Moneylife
, almost 90% of the loans advanced by IFIN have turned bad underlining the deep corruption and culpability of the previous management. Of its loan book of Rs18,805 crore, Rs10,656 crore was lent to third-party borrowers and nearly Rs7,000 crore to group companies, N Sivaraman, chief operating officer at IL&FS group, has revealed.
According to Kaushik Modak, who now heads IFIN, the company has recovered Rs931 crore since the new board led by banker Uday Kotak took over the IL&FS Group.