Investigation into the high-profile IL&FS fraud has showed that the then CEO of the group’s financial services arm IFIN helped a senior director of a leading rating agency buy a duplex villa worth crores at a discount when an important circuitous transaction with a defaulter borrower was underway in 2012-13.
The probe by the government’s white-collar crime probe agency SFIO has already unearthed connivance of auditors and independent directors with the then top management of IFIN (IL&FS Financial Services Ltd) in defrauding the company.
IFIN and several other group companies have been found to have indulged in multiple circuitous transactions involving several illegalities including fast disbursals to some borrowers despite their bad track record in servicing existing loans and also delayed recoveries.
