New Delhi: Days after dismissal of his petition by the Supreme Court, the Serious Fraud Investigation Office (SFIO) on Friday arrested Former IL&FS CEO Ramesh Bawa in a case related to massive loan defaults.
The former top executive has been held under Section 447 of the Companies Act that enables SFIO to arrest a person for committing fraud.
The apex court had earlier this week dismissed Bawa's petition, which sought to stop the SFIO's criminal proceedings against him.
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The SFIO, the investigating arm of Ministry of Corporate Affairs, has been probing a series of defaults by the infrastructure financing major, which is saddled with a debt of around Rs 91,000 crore.
On April 1, the SFIO had arrested Hari Sankaran, former IL&FS chairman, following which Bawa filed an anticipatory bail plea.
The agency accused Sankaran of granting loans to entities that were not credit-worthy or had declared Non-Performing Assets (NPAs) causing massive losses to the company and its creditors.
