Two more former top IL&FS officials arrested

The Enforcement Directorate on Wednesday arrested two former top officials of the IL&FS under its money-laundering probe into alleged financial irregularities of the crisis-hit firm.

A senior ED official said the agency has arrested Arun Saha, a former Joint Director of IL&FS Financial Services, and Karunakaran Ramchand, the former Managing Director, IL&FS Transportation Networks (ITNL), from Mumbai.

Both of them were involved in various illegal activities detrimental to IL&FS, the official said.

The official said that both of them were involved in sanctioning and disbursement of loans without taking proper security, to borrowers who were already in financial distress and unable to pay earlier loans.

The ED was probing the case based on an FIR filed before the Economic Offences Wing (EOW) of the Delhi Police in December last year.

In April, the Serious Fraud Investigation Office had arrested former IL&FS MD & CEO Ramesh Bawa and former IL&FS chairman Hari Sankaran in connection with financial irregularities in the company.