Making its second arrest in the IL&FS case, the Serious Fraud Investigation Office (SFIO) Saturday arrested former IL&FS Financial Services chief Ramesh C Bawa, official sources said.
They said Bawa, who had served as managing director and CEO, was arrested on the grounds of abusing his powers at the company through fraudulent conduct. He also granted loans to entities which were not creditworthy and caused wrongful loss to the company and its creditors, they added.
Earlier this month, the probe agency arrested former IL&FS vice chairman Hari Sankaran.
The sources said IL&FS Financial Services Ltd had borrowings of around Rs 17,500 crore through debt instruments and bank loans.
