Hari Sankaran, former chairman and managing director of crisis-hit lender IL&FS, has been arrested for alleged abuse of power in the company, sources said. “The Serious Fraud Investigation Office today arrested Hari Sankaran in connection with the ongoing investigations in to the affairs of IL&FS and its group entities,” said an officer who asked not to be identified.
The government took control of the heavily indebted infrastructure financing and construction group in October last year, following a string of defaults on debt obligations. IL&FS is reeling under debts of Rs 91,000 crore.
“Mr Sankaran has been arrested on the grounds of abusing his powers in IL&FS Financial Services Ltd through his fraudulent conduct and in granting loans to entities which were not creditworthy or have been declared non-performing assets,” said the officer.
The SFIO will keep him in custody till Tuesday.
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