IL&FS crisis: Enforcement Directorate raids multiple locations after filing payment default case under PMLA

New Delhi: The Enforcement Directorate (ED) Wednesday conducted searches at multiple locations in connection with the IL&FS payment default crisis, officials said.

They said the central probe agency has registered a case under the Prevention of Money Laundering Act (PMLA) in the alleged payment default case and raids were being conducted against executives linked to the Infrastructure Leasing and Financial Services (ILFS).

The raids are on in Mumbai and locations in Delhi-NCR, they said.

IL&FS crisis: Enforcement Directorate raids multiple locations after filing payment default case under PMLA

Representational image. Image courtesy: IL&FS

IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 91,000 crore.

The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018.

IL&FS is sitting on a debt pile of about Rs 91,000 crore.

On 5 February, the National Company Law Appellate Tribunal (NCLAT) had asked the government to provide a list of IL&FS group companies along with their categorisation based on their respective financial positions to pay their debt.

The government had submitted the debt resolution plan for crisis-hit IL&FS to the NCLAT and also suggested the name of retired Supreme Court judge Justice D K Jain to supervise the entire process.

The entire resolution process would be based on the principles enunciated in the Insolvency and Bankruptcy Code.

Under the plan, the government has categorised IL&FS group companies into green, amber and red based on their respective financial positions.

With PTI inputs 

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Updated Date: Feb 20, 2019 13:17:23 IST

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