IL&FS scam: Two former executives of crisis-hit lending firm sent to ED custody till 25 June

Mumbai: Two former IL&FS executives arrested by the Enforcement Directorate for their alleged roles money laundering for the crisis-hit lending firm, were on Thursday remanded to six-day custody of the central agency. IL&FS former joint managing director Arun K Saha and its transportation network MD K Ramchand were remanded in ED’s custody by a special PMLA court till 25 June. [caption id=“attachment_5251861” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The two were arrested late on Wednesday and produced before Judge P P Rajvaidya of the special court set up under the Prevention of Money Laundering Act. The duo’s were the first arrests in the case of financial irregularity by IL&FS. The central agency had lodged a money laundering case against the firm in February this year and had raided homes and offices of a number of its former executives twice to gather additional evidence. The debt crisis of the infrastructure lender came to light following a series of defaults in payments of loans by its group companies beginning September 2018. IL&FS, which has defaulted in payment of loans to SIDBI has a combined debt of over Rs 91,000 crore along with its subsidiaries.