Mumbai: A special PMLA court on Thursday sent two former IL&FS executives to ED custody till June 25 for questioning in connection with an alleged money laundering case.
The duo--Arun K Shaha and K Ramchand--were arrested in Mumbai yesterday.
Shah was the former joint managing director of IL&FS Financial Services, while Ramchand was the former managing director.
The case came up for hearing before Justice P P Rajyvaidya in the Special Prevention of Money Laundering Act (PMLA) court.
During the course of proceedings today, the Enforcement Directorate said that the scam is worth Rs 91,000 crore and a lot of investigation is required for the same.
"The accused have certain information for which a custodial remand of 7 days is required," the law enforcement agency said, while seeking for their custody.
Accused Arun Saha also moved an application in the court seeking interim bail of a day to attend his daughter's engagement ceremony.
The court, while accepting the application, asked ED to reply on it by tomorrow.
The Gunjan Mangla appearing on the behalf of accused said that the two are ready to cooperate with the Serious Fraud Investigation Office (SFIO) and Delhi Police's Economic Offence Wing (EWO).
"If they do not cooperate with those agencies, you may arrest them," said the counsel.
She further said that the residence of both the accused has been searched and there is nothing left to be investigated.
"ED has no power to seek custody of the accused as the agency has to satisfy this court first under what power and what law they are seeking the custody," said Gunjan.
The counsel also stated that Ramchand is a senior citizen and has health issues, hence court should not grant custody to ED. "Accused are also regularly co-operating with the agencies so their custody should not be granted," she said.
It may be noted that IL&FS had borrowings to the tune of Rs 17,000 crore from 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 National Company Law Tribunal (NCLT) in October last year had granted permission to the central government for superseding the Board of the debt-ridden firm.
It had also appointed a six-member panel, headed by Kotak Mahindra Bank Managing Director Uday Kotak to take over the management with immediate effect. IF&LS has over Rs 91,000 crore in debt.