The Central Bureau of Investigation (CBI) has launched a probe into IL&FS Energy Development Company regarding an alleged Rs 212 crore loan fraud involving Canara Bank. The case focuses on the alleged misuse of funds that were originally approved for renewable energy projects. This investigation is part of ongoing legal actions related to the group's past management.
The Central Bureau of Investigation has started a criminal investigation into IL&FS Energy Development Company Limited following a complaint filed by Canara Bank. The investigation centers on allegations that loan funds, originally provided by the former Syndicate Bank—which has since merged into Canara Bank—were not used for their intended purpose. The agency alleges that money sanctioned for renewable energy projects, such as solar and wind power initiatives, was diverted elsewhere, resulting in an estimated loss of Rs 212 crore for the lender.
To gather evidence, CBI officials conducted coordinated searches at multiple corporate locations, including those in Mumbai, Delhi, and Noida. During these operations, investigators seized various documents, including internal ledgers, bank records, and property details, which are now being analyzed to build the case. The agency is specifically looking into potential criminal conspiracy and cheating under the Prevention of Corruption Act.
This case relates to the historical management of the IL&FS group, which entered a major financial crisis in 2018. Following that collapse, the Government of India intervened and appointed a new board to stabilize the group and oversee the complex process of debt resolution. The individuals named in this current FIR, including Hari Sankaran, Ramesh Chandra Bawa, Sunil Wadhwa, Anoop Seth, and Arun Kumar Saha, were associated with the company’s management during the period under scrutiny. It is important to note that the current management, which was brought in by the government for the resolution process, is distinct from the leadership team named in this investigation.
For market observers and stakeholders, this probe underscores that legal scrutiny into the past governance and financial actions of the IL&FS group remains an active process. The investigation highlights the importance of financial accountability, as authorities continue to trace how corporate funds were handled before the group’s insolvency. The next important steps in this legal process will involve the detailed examination of the seized financial documents and the questioning of the individuals named in the FIR to determine the extent of the alleged diversion and the roles of those involved.