New Delhi: As the probe of IL&FS fraud, committed likely by its in-house top honchos, is taking an aggressive turn, the Ministry of Corporate Affairs-led investigating agency Serious Fraud Investigation Office (SFIO) is mulling interim attachment of all movable and immovable assets of auditors, independent directors and other top officials. Besides, their lockers, bank accounts and jointly held properties are also under the SFIO scanner.
A source in the Corporate Affairs Ministry said, "The prosecution of former executive and independent directors of IL&FS Financial Services Ltd (IFIN) among others is showing the way how the fraud took shape where several defaults involved in a total estimated amount of over Rs 94,000 crore went unnoticed by the infrastructure giant."
"We are also looking to seek interim attachment of all movable and immovable assets of all those officials, including auditors, independent directors and other top officials in the scam. Also, their running bank accounts, lockers and jointly held properties are under the agency's lens," the source said.
The SFIO's first charge-sheet came on IFIN, the first subsidiary of IL&FS, which is proved to be a gateway to this huge fraud.
When asked about the modus operandi of the probe, the source said, "The SFIO is also collecting details about all borrowings by IFIN from several banks as well as through market instruments. Besides, we are probing the exact role of officials of banks and the credit rating agencies involved in it as well."
The first charge-sheet follows inspection of accounts of close to 400 entities, an extensive forensic audit, data collected from desktops and laptops seized from various IL&FS offices as also e-mails extracted from the IL&FS servers, RBI inspection reports, minutes of meetings, among other documents, as also the assessment reports from the government-appointed new board of IL&FS.
In its chargesheet filed before a special court in Mumbai on last Friday, the SFIO has accused 30 entities/individuals of various violations and offences, including of financial fraud. Some of the accused persons are already in judicial custody.
The former top-management members of IFIN have been charged with committing fraud with intent to injure the interest of the company, its shareholders and creditors, resulting in wrongful loss to the company. They have been accused of forming a 'coterie to control day-to-day affairs of the company and of colluding with others in using illegal methods on multiple occasions in violation of the RBI directions.
Several associates such as Deloitte Haskins & Sells and BSR & Associates are named In the chargesheet.
