ED Probes ₹2,364 Crore Money Laundering Case Linked to IL&FS Financial Services
A forensic audit by Grant Thornton has revealed that IL&FS Financial Services allegedly rerouted ₹2,364 crore in loans to its own group firms and key promoters. The Enforcement Directorate is now probing these transactions for possible money laundering, with some directors personally benefiting. The findings expose serious financial misconduct and raise concerns over corporate governance failures.
New Delhi — The Enforcement Directorate (ED) has launched a probe into suspected money laundering worth ₹2,364 crore allegedly siphoned off from IL&FS Financial Services Ltd (IFIN), according to findings from a forensic audit by Grant Thornton.
Moneycontrol has reviewed the interim audit report, which was submitted to IL&FS’s new board on February 20. The audit details questionable financial practices where loans issued by IFIN to external borrowers were allegedly routed back to IL&FS group firms, mainly ITNL (IL&FS Transportation Networks Ltd).
Notably, the report references unapproved minutes from a board meeting held on September 11, 2018, suggesting that the former board of directors and members of the Committee of Directors may have been aware of the irregular loan arrangements.
According to Grant Thornton’s findings, IFIN had extended loans to third-party entities, which in turn redirected the funds—estimated at ₹2,270 crore—to IL&FS-affiliated companies. Some of the major recipients included:
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ITNL – ₹1,150 crore
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Srinagar Sonmarg Tunnelway Ltd – ₹390 crore
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Gujarat Integrated Maritime Complex – ₹250 crore
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Fagne-Songard Expressway – ₹200 crore
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Chennai-Nashri Tunnelway – ₹150 crore
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Sea Land Port – ₹100 crore
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Sitar Bikaner – ₹30 crore
These transactions allegedly involved intermediaries like SREI, Empower, Vistar, GHV, PCL, Sangam, and Dynamatic, who received the initial funds and passed them on to IL&FS group companies.
Furthermore, the ED is looking into six cases where nearly ₹100 crore in loans were allegedly diverted to the personal accounts of company promoters and directors.
In one such instance, IFIN loaned ₹25 crore to Gateway Distriparks, which subsequently lent the amount to Prism International Pvt Ltd. In September 2016, Prism’s director Prem Kishan Gupta received ₹7.5 crore from these funds. A similar ₹75 crore loan issued in October 2017 to Prism was also traced back to Gupta.
In another case, Flemingo Group reportedly received ₹514.5 crore in loans, from which its directors, Kabir and Viren Ahuja, allegedly pocketed ₹8.81 crore. Additionally, Siddharth Dinesh Mehta, associated with Bay Capital and IL&FS Energy Development Company Ltd, reportedly received ₹2.95 crore through a loan routed via Indus Equicap Consultancy.
The ED investigation is ongoing, with officials suggesting more disclosures may emerge as they delve deeper into the fund flows and potential violations of the Prevention of Money Laundering Act (PMLA).