The Economic Offence Wing of the Chennai Police have arrested Ravi Parthasarathy, former chairman of the debt-ridden lender IL&FS, following a complaint by investors that he was allegedly cheating them.
As per media reports, Parthasarathy was named in an FIR filed last year in September by the Chennai-based 63 Moons Technologies Ltd, which alleged it was cheated of Rs 200 crore by IL&FS.
Parthasarathy, an IIM-Ahmedabad graduate, had worked with IL&Fs for over 30 years. He was the non-executive chairman of the holding company of the IL&FS group when he resigned from his position in 2018. The same year, the government took control of the company and appointed a new board. The government-appointed panel had hinted at corrupt practices by the previous management in how it sold a group entity the previous year.
The IL&FS crisis stemmed from the company defaulting on some of its papers and facing a liquidity crunch. After it defaulted on its bond obligations, it owed around Rs 90,000 crore to banks and other creditors. Since 2019, IL&Fs has been mired in insolvency proceedings.