MUMBAI: The Enforcement Directorate (ED) has subpoenaed Maharashtra NCP Official sources said on Friday that President and MLA Jayant Patil is scheduled to be questioned in a money laundering case related to alleged financial irregularities at now-bankrupt financial services firm IL&FS.
The 61-year-old MP from Islampur, the seat of Maharashtra, was asked to cancel before the federal authority here on Friday, it said.
Patil, a former Home Secretary and Treasury Secretary, is also President of the Nationalist Congress Party (NCP) and a seven-term MP.
The alleged payment of a “commission amount” by some accused companies to Patil affiliated companies is under investigation by the agency and it is understood that he will be questioned about these transactions and his testimony will be recorded in accordance with the provisions of the Anti-Money Laundering Act (PMLA) .
The agency recently took new action in this 2019 case after raiding the Mumbai offices of Deloitte Haskins and Sells and BSR and Associates, an Indian subsidiary of global accounting firm KPMG, the two former auditors of IL&FS.
Infrastructure Leasing and Financial Services Limited (IL&FS) filed for bankruptcy in 2018.
The search action against the two auditors took place a week later supreme court reversed a Bombay High Court ruling dropping an SFIO investigation into the two companies, both former auditors of IL&FS Financial Services, paving the way for action against them under the Companies Act and giving it to the National Company Law Tribunal (NCLT) was allowed to advance its decision to investigate them.
The Major Fraud Investigation Bureau (SFIO) is an agency under the Department of Corporate Affairs that investigates and prosecutes white-collar crime and fraud.
The money laundering investigation into alleged financial irregularities at IL&FS was launched by the ED in 2019 after the federal agency became aware of an FIR by the Delhi Police Economic Offenses Wing (EOW) against IRL, ITNL (group company of IL&FS), their officers and others company was submitted Other.
The ED also took note of a complaint by the SFIO against IL&FS Financial Services (IFIN) and its officers.
In this case, too, the authority had seized assets from various companies in the past.
Arun Kumar Saha, one of the former members of the Executive Committee of IFIN, and Karunakaran Ramchand, former managing director of ITNL, were arrested by the ED. The ED also filed an indictment with a special PMLA court in Mumbai.
The agency alleged in the indictment that IL&FS management committed commissions and omissions, resulting in illegal personal gain at the company’s expense.
In order to maintain IFIN’s credibility – so that it could continue to receive high compensation – the directors allegedly falsified the accounts and carried out “awkward transactions” to artificially improve the balance sheet of the IL&FS group, it said. In fact, these illegal activities led to further losses for the group.
According to the records, the IL&FS Group companies had a total debt burden of more than US$91 trillion.
This had led to the initiation of lawsuits against the companies and their auditors.
The Union Government took over management control of IL&FS and appointed a new board in October 2018 to control defaults and restore confidence and financial stability to the capital markets.
The 61-year-old MP from Islampur, the seat of Maharashtra, was asked to cancel before the federal authority here on Friday, it said.
Patil, a former Home Secretary and Treasury Secretary, is also President of the Nationalist Congress Party (NCP) and a seven-term MP.
The alleged payment of a “commission amount” by some accused companies to Patil affiliated companies is under investigation by the agency and it is understood that he will be questioned about these transactions and his testimony will be recorded in accordance with the provisions of the Anti-Money Laundering Act (PMLA) .
The agency recently took new action in this 2019 case after raiding the Mumbai offices of Deloitte Haskins and Sells and BSR and Associates, an Indian subsidiary of global accounting firm KPMG, the two former auditors of IL&FS.
Infrastructure Leasing and Financial Services Limited (IL&FS) filed for bankruptcy in 2018.
The search action against the two auditors took place a week later supreme court reversed a Bombay High Court ruling dropping an SFIO investigation into the two companies, both former auditors of IL&FS Financial Services, paving the way for action against them under the Companies Act and giving it to the National Company Law Tribunal (NCLT) was allowed to advance its decision to investigate them.
The Major Fraud Investigation Bureau (SFIO) is an agency under the Department of Corporate Affairs that investigates and prosecutes white-collar crime and fraud.
The money laundering investigation into alleged financial irregularities at IL&FS was launched by the ED in 2019 after the federal agency became aware of an FIR by the Delhi Police Economic Offenses Wing (EOW) against IRL, ITNL (group company of IL&FS), their officers and others company was submitted Other.
The ED also took note of a complaint by the SFIO against IL&FS Financial Services (IFIN) and its officers.
In this case, too, the authority had seized assets from various companies in the past.
Arun Kumar Saha, one of the former members of the Executive Committee of IFIN, and Karunakaran Ramchand, former managing director of ITNL, were arrested by the ED. The ED also filed an indictment with a special PMLA court in Mumbai.
The agency alleged in the indictment that IL&FS management committed commissions and omissions, resulting in illegal personal gain at the company’s expense.
In order to maintain IFIN’s credibility – so that it could continue to receive high compensation – the directors allegedly falsified the accounts and carried out “awkward transactions” to artificially improve the balance sheet of the IL&FS group, it said. In fact, these illegal activities led to further losses for the group.
According to the records, the IL&FS Group companies had a total debt burden of more than US$91 trillion.
This had led to the initiation of lawsuits against the companies and their auditors.
The Union Government took over management control of IL&FS and appointed a new board in October 2018 to control defaults and restore confidence and financial stability to the capital markets.
