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

WION Web Team
New Delhi, Delhi, IndiaUpdated: May 22, 2019, 02:02 PM IST
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File photo. Photograph:(Reuters)

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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 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)