Even after IL&FS Financial Service Limited (IFIN) could not recover advances worth Rs 500 crore to Sivasankaran group entities, a loan of Rs 175 crore was sanctioned to an arm of the group at the behest of Hari Sankaran, the former vice-chairman and managing director of IL&FS group, said the petition filed by the Serious Fraud Investigation Office (SFIO) that led to the arrest of Sankaran on Monday. The petition alleged that Sankaran favoured the group because of his proximity to C Sivasankaran.
The loans to Sivasankaran group, despite their defaults on previous advances, affected the asset quality of IFIN, a subsidiary of the Infrastructure Leasing & Financial Services (IL&FS) group, the SFIO petition alleged.
