Former MD of IL&FS Financial Services arrested in fraud case

Shiv Kumar
Tribune News Service
Mumbai, April 13

The Serious Fraud Investigation Office (SFIO) on Friday night arrested Ramesh Bawa, former Managing Director and CEO of IL&FS Financial Services in connection with the multi-crore rupee fraud in the financial conglomerate.

According to sources here, Bawa was arrested from the residence of a friend where he was hiding ever since the Supreme Court refused to grant him protection from arrest earlier this week. He will shortly be brought to Mumbai, officials here said.

Bawa is the second official to be arrested in connection with the IL&FS case. Earlier this month Hari Sankaran, former vice-chairman of the company was arrested by the SFIO. Both Sankaran and Bawa were arrested under provisions of the Companies Act which covers fraud.

Officials said here that attempts to question Ravi Parthasarathy, former Chairman of IL&FS have been foiled because of his ill-health.

Parthasarthy is battling last-stage cancer in a Mumbai hospital, according to officials at the SFIO.

Recently the board under banker Uday Kotak constituted by the government to administer the affairs of the stricken financial conglomerate indicated that 90 per cent of Rs 91,000 debt of IL&FS may have to be written off.