IL&FS PARTNER ALLEGES FUND DIVERSION IN JV

NEW DELHI: The Delhi Police has started probing allegations of fund diversion in a joint venture (JV) of troubled non-bank lender Infrastructure Leasing & Financial Services Ltd (IL&FS) after its JV partner filed complaints.

Investigations are on into the allegations made by Ashish Begwani, a director at Enso Infrastructures Pvt. Ltd. that took a 15% stake in IL&FS Rail Ltd, a special purpose vehicle set up for the Gurugram metro project, for ₹170 crore, the economic offences wing of the Delhi Police said .

“It is alleged by the complainant that directors of the alleged company, IL&FS Rail Ltd, and other officers of the company intentionally siphoned off funds of the company to the tune of ₹70 crore causing loss to the complainant company. Investigation is still going on,” said the police. An email sent to the IL&FS group remained unanswered at the time of going to press.

The alleged diversion of funds dates back to the previous management of the IL&FS group. The government had on October 1 replaced the board of directors of the group with a state-appointed board led by Uday Kotak, MD and CEO of Kotak Mahindra Bank.