Former IL&FS MD Ramesh Bawa arrested

New Delhi, Apr 13: Former managing director and chief executive officer of crisis-hit IL&FS Financial Services (IFIN), Ramesh Bawa has been arrested by the Serious Fraud Investigation Office (SFIO) on Friday. This is the second arrest made by the investigation arm of the Ministry of Corporate Affairs (MCA).

Earlier this month, the agency had arrested Hari Sankaran, the former vice chairman of IL&FS. He is currently lodged in Mumbai's Byculla district jail.

Sankaran was arrested in Mumbai in connection with the ongoing investigations into the affairs of IL&FS and its group entities.

IL&FS Financial Services had borrowings of more than Rs 17,000 crore through debt instruments and bank loans. Provident funds, pension funds, gratuity funds, mutual funds, public and private sector banks, are among those who have invested in these debt instruments.

The alleged financial irregularities at the IL&FS came to light last year after some group entities defaulted on debt repayments. The government, which superseded the company's board, is working on a resolution plan.