Enforcement Directorate Issues Second Summon to NCP Leader and MLA Jayant Patil in Connection with IL&FS Scam

by Web Desk | Published: 15 May 2023

The Enforcement Directorate (ED) has issued a second summons to Jayant Patil, the president and MLA of the Maharashtra NCP, in relation to the alleged IL&FS scam. Patil was previously summoned last week by the agency to record his statement in the money laundering investigation involving Infrastructure Leasing & Financial Services (IL&FS), but he did not appear due to family functions. He is now required to appear before the ED on May 22.
The ED conducted searches against two former auditing firms of IL&FS, BSR and Associates and Deloitte Haskins and Sells, in connection with its money laundering investigation into alleged financial irregularities at the infrastructure development and finance company. Officials also questioned a few employees from the two companies and seized papers during the searches.
The National Company Law Tribunal (NCLT) can now proceed with its investigation into BSR and Associates and Deloitte Haskins and Sells under the Companies Act, as the Supreme Court recently overturned the Serious Fraud Investigation Office (SFIO) investigation into the two corporations. The SFIO is an office within the Ministry of Corporate Affairs that handles the investigation and prosecution of white-collar crimes and frauds.
The ED's investigation into alleged financial irregularities at IL&FS was initiated in 2019 following a complaint made by the SFIO against IL&FS Financial Services (IFIN) and its representatives. IL&FS declared bankruptcy in 2018, and the Delhi Police's Economic Crimes Wing (EOW) filed an FIR against IRL, ITNL (group firms of IL&FS), its officials, and others, leading to the federal agency's money laundering investigation. The government had previously attached the assets of several other businesses in this case.