News WrapGet Handpicked Stories from our editors directly to your mailbox

IL&FS payment default crisis: Enforcement Directorate conducts raid on former Directors in Mumbai

File photo: People walk past a building of IL&FS (Infrastructure Leasing and Financial Services Ltd.) outside its headquarters in Mumbai, September 25, 2018. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India May 22, 2019, 01.59 PM (IST)

The Enforcement Directorate (ED) on Wednesday conducted raids at multiple locations of former directors in connection with the Infrastructure Leasing & Financial Services Limited (IL&FS) payment default crisis, officials said.

The searches are being conducted in connection with the Prevention of Money Laundering Act case in multi-crore IL&FS payment default crisis.

IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 94,000 crore.

The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018.

However, the government expects to recover up to Rs 50,000 crore from the sale of entities belonging to Infrastructure Leasing & Financial Services (IL&FS) group and pay back its lenders, sources said. 

The beleaguered firm has an estimated debt of over Rs 94,000 crore.

(With inputs from agencies)