Debt-ridden IL&FS former chief Ravi Parthasarathy arrested on investor complaint

IL&FS and its subsidiaries had a debt of around Rs 91,000 crore at the time of the crisis.

Chennai:

Ravi Parthasarathy, the former chief of debt-ridden lender IL&FS, has been arrested in Chennai, officials said.

He was named in the complaint of alleged cheating by some investors in the Economic Offenses Wing of Chennai.

The First Information Report (FIR) was filed by Chennai-based 63 Moons Technologies Ltd in September last year. The company alleged that a fraud of Rs 200 crore has been committed by IL&FS. Some investors have also filed complaints.

Mr Parthasarathy left Infrastructure Leasing and Financial Services Limited (IL&FS) in June 2018 after working with the company for over 30 years.

In 2018, the huge financial crisis in IL&FS shook the markets. When the crisis was detected, IL&FS had infrastructure and financial assets of over Rs 1.15 lakh crore. The government had said that the company’s debts were a result of mismanaged borrowings in the past.

IL&FS and its subsidiaries have a debt of about Rs 91,000 crore.

The government then took over as a loan default by the infrastructure conglomerate raised fears of a transition and liquidity crisis in the markets.

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