IFIN had no checks and balances, suggest fraud probe office charges

MUMBAI: The Serious Fraud Investigation Office (SFIO) charge-sheet against IL&FS Financial Services Ltd (IFIN) has observed shortcomings in operating management, risk management, compliance and auditing for years, an SFIO official said.

One serious charge is that of loan ever-greening, which allegedly contributed to the Infrastructure Leasing and Financial Services Ltd (IL&FS) loan default of nearly ₹1 trillion. Existing loans were renewed, or ever-greened, by giving a new loan to repay the old loan “resulting in delayed recognition of non-performing assets (NPAs)”. SFIO has alleged that the IFIN management and the audit committee colluded on delaying recognition of stressed accounts. Mint has seen a copy of the charge-sheet.