The Enforcement Directorate (ED) Wednesday conducted searches at multiple locations in connection with the IL&FS payment default crisis, officials said.
The Enforcement Directorate (ED) Wednesday conducted searches at multiple locations in connection with the IL&FS payment default crisis, officials said.
They said the central probe agency has registered a case under the Prevention of Money Laundering Act (PMLA) in the alleged payment default case and raids were being conducted against executives linked to the Infrastructure Leasing and Financial Services (ILFS).
The raids are on in Mumbai and locations in Delhi-NCR, they said.
IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 91,000 crore. The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018. IL&FS is sitting on a debt pile of about Rs 91,000 crore.
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The National Company Law Tribunal (NCLT) had in October last year granted permission to the central government for superseding the Board of the debt-ridden firm.
Read: Rs 91,000-crore IL&FS crisis: What is it?
It also appointed a six-member panel, headed by Kotak Mahindra Bank Managing Director Uday Kotak, to take over the management with immediate effect.
IL&FS has suffered a series of downgrades in recent times - and there are growing concerns that many of these firms took on excessive credit risk by lending to people with little means of paying them back. There are also growing questions about whether lax regulation has allowed some of these firms to be used for money laundering.
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 "IL&FS crisis: Enforcement Directorate raids underway at locations linked to ex chairman, others")
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