Serious Fraud Investigation Office (SFIO) has arrested former Managing Director and Chief Executive Officer of IL&FS Financial Services (IFIN), Ramesh Bawa on Friday. This arrest came soon after the Supreme Court’s refusal of extending him protection from being apprehended. Mr Bawa has been arrested under Section 447 of the Companies Act that enables the investigating arm of Ministry of Corporate Affairs to make an arrest for committing fraud.
Earlier this month, the SFIO had arrested the former Chairman Hari Sankaran for fraud. IL&FS, a major infrastructure financing and construction company, has a total debt of Rs. 91,000 crore ($12.97 billion) and has been trying to sell its assets to repay debt after several defaults forced the government to overhaul its management.