Investigations by the Enforcement Directorate found that the IL&FS Transportation Networks India Limited laundered more than Rs.6500 crores during the period under investigation.
SFIO looks into the multi disciplinary irregularities of the company and its subsidiaries, Enforcement Directorate was appointed to look into the possibilities of money laundering in the IL&FS Transportation Network Limited (ITNL).
Previously, ED found out more than Rs. 5000 crores worth of Money Laundering in the case of IL&FS Financial Services (IFIN).
The agency filed a case under the Prevention of Money Laundering Act (PMLA) against an IL&FS subsidiary and is also probing the parent and several group companies and former officials, following a debt crisis at the financial institution that led to defaults on payments.
IL&FS Transportation created the maze of shell companies to launder more than Rs.6500 crores out of the company by creating the cost over run in the projects.
The laundered sums were either used for the purpose of evergreening of loans or for creating personal assets.