Ravi Parthasarathy member of PC’s minion team
Ravi Ramaswami Parthasarathy, the close confidant of former finance minister P Chidambaram, has finally been ensnared by the long arm of law. With the arrest of Ravi Parthasarathy the kingpin of Rs.1 lakh crore Infrastructure Leasing and Finance Limited (IL&FS) scam by the Chennai Economic Offense Wing (EOW), the writing on the wall is clear – No One is Above the Law. Chennai EOW has set a benchmark[1].
Who is Ravi Parthasarathy?
Ravi Parthasarathy became the Chief Executive Officer (CEO) of the newly set up IL&FS[2]. Since then and till 2018, he was the CEO till all the scams surfaced and he was forced to step down. The writing was on the wall when the Honourable Madras High Court squashed his anticipatory bail in connection with a First Information Report (FIR) filed against him under various sections by the Economic Offences Wing (EOW) of Chennai police. The Madras HC quashed his half-baked defence of ill-health and ceasing to be the chairman of IL&FS with effect from 2018, allowing EOW-Chennai to take him into custody[3].
Parthasarathy, who was at the helm of IL&FS for over 25 years, is accused of masterminding one of the largest financial frauds and systematically driving a behemoth of a financial institution to financial ruins.
With strict and unbiased actions against Mehul Choksi, Nirav Modi, Vijay Mallya by the BJP government at the Center, and now with Ravi Parthasarathy by the DMK Govt in the State, it has firmly established that there is no escaping the law.
In its petition, the Government of India (GoI) mentioned, “Ravi Parthasarathy and his team were responsible for the negligence, incompetency and misleading the public by presenting rosy financial statements. IL&FS was camouflaging its financial statements by hiding a severe mismatch between its cash flows and payment obligations. It was also hiding total lack of liquidity and flaring adverse financial ratios”.
Fake Medical reasons
Ravi Parthasarathy had been cheating all investigating agencies falsely claiming that he is on the last stage of cancer — for the last four years[4]. On the contrary, he has been seen moving in social circles, frequently partying, and freely travelling to international destinations, which was finally stopped by Serious Fraud Investigation Office (SFIO) action. Initially, he had even escaped to London to avoid criminal prosecution. His critical health condition did not stop him from splurging Rs.48 crore for purchasing property in Mumbai and Rs.20 million for buying a villa in Belgium. The Enforcement Directorate (ED) has already attached the said properties as Proceed of Crime.[5]
Parthasarathy, who was at the helm of IL&FS for over 25 years, is accused of masterminding one of the largest financial frauds and systematically driving a behemoth of a financial institution to financial ruins. In addition to premier investigating agency, the SFIO, the Reserve Bank of India (RBI), Ministry of Corporate Affairs (Union of India), the Registrar of Companies (RoC), National Company Law Tribunal (NCLT) – Mumbai along with the Grant Thornton forensic report has made adverse findings against him.[6]
The RBI report submitted on March 22, 2019, underlines that the major role in perpetrating the fraud and financial irregularity was played by Ravi Parthasarathy during his tenure as Group Chairman.
Mismanagement
The RoC has observed mismanagement and compromises in corporate governance norms, while there is another FIR registered by the EOW-New Delhi against Ravi Parthasarathy, Hari Sankaran – former Vice-Chairman of IL&FS[7], IL&FS and ITNL (Transportation Networks India Limited) under various sections of the Indian Penal Code (IPC).
In one of the most damaging findings, the GoI petition mentions, “IL&FS had created a trust known as the Employee Welfare Trust which was used as an instrument to enrich its directors at the cost of the Company[8]. The said trust was used to perpetrate a fraud on IL&FS ad its group companies. The said trust-owned 12% of IL&FS Limited[9]. Ravi Parthasarathy and certain other senior IL&FS personnel were major beneficiaries of the Trust.”
The RBI report submitted on March 22, 2019, underlines that the major role in perpetrating the fraud and financial irregularity was played by Ravi Parthasarathy during his tenure as Group Chairman. The report mentions indiscriminate sanctioning of loans, flouting of RBI norms, fraudulent transactions to certain accounts, showing inflated numbers of subsidiaries, conflict of interest and concentration of power in the hands of few, which included Ravi Parthasarathy.
The SFIO (Serious Fraud Investigation Office) complaint dated May 30, 2019, names Ravi Parthasarathy as the prime accused. The report mentions that Parthasarathy was the key decision-maker in the IL&FS group and used the group as his fiefdom. Being chairman of IL&FS group and director of its various subsidiaries, the coterie led by Parthasarathy abused its position and diverted funds of its group companies.
It may be noted that the NCLT-Mumbai order to recast the accounts of the IL&FS group was challenged by Parthasarathy up till the Supreme Court, which upheld the GoI decision. The forensic audit by Grant Thornton also reveals a bevy of illegal practices, bribing of credit rating agencies and other fraudulent practices, with these involvements clearly indicating the then group chairman of IL&FS – Ravi Parthasarathy.
ED should arrest Parthasarathy
The Rs.200 crore cheating case is a drop in the bucket when one considers the IL&FS scam’s total value, which runs into Rs.1 lakh crore! As Chidambaram’s minion, Ravi Parthasarathy knows where the skeletons of the former UPA regime’s netas are buried. In comparison with this, Mehul Choksi’s and Vijay Mallya’s crimes are miniscule. The investigative agency should lose no time in arresting him and conduct a custodial interrogation and make him cough up where and who got the IL&FS loot.
References:
[1] Chennai Police EOW arrests Chidambaram’s henchman Ravi Parthasarathy of IL&FS; 15 days in jail in a cheating case of Rs.200 crores – Jun 11, 2021, PGurus.com
[2] Three decades of Ravi Parthasarathy led to IL&FS’s lateral growth – Jul 25, 2018, Business Standard
[3] EOW arrests former IL&FS chairman Ravi Parthasarathy – Jun 11, 2021, Outlook
[4] Ex-IL&FS boss Ravi Parthasarathy applies for overseas travel for treatment – Nov 27, 2018, Financial Express
[5] IL&FS case: ED may attach assets of ex-chairman Ravi Parthasarthy, two others – Jul 31, 2019, Financial Express
[6] Forensic Auditor Grant Thornton Charges the New IL&FS Management with Denying Vital Information – May 25, 2021, Money Life
[7] Hari Sankaran, Ex-Boss Of Lending Firm IL&FS, Arrested For Fraud – Apr 02, 2019, YouTube
[8] IL&FS Scam: SFIO Reveals How Employees Welfare Trust Was Used by Top Executives for Unlawful Benefits – Dec 07, 2018, Money Life
[9] IL&FS was sinking but some of its senior management was prospering – Oct 15, 2018, The Print
His first book NDTV Frauds has been published and is an Amazon Bestseller.It ranked second among all eBooks that were self-published in 2017.
His second book, The Gist of GSTN which too is available on Amazon as an e-Book and as a paperback.
His third book, The Rise and Fall of AAP is also available in print version or as an e-Book on Amazon.
His fourth book, C-Company just released to rave reviews and can be bought as a print version or as an e-Book on Amazon.
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The real action took place in Gujarat such as the GIFT City scam and in UP such as the Delhi Noida Bridge. If the DMK had not won recently in Tamil Nadu with Congress as an ally, there would be no action permitted by the babus of the state. Look at the board of IL&FS. It is manned and womaned by IAS officers, retired and active salaried.
Nothing will ever be done.
If PC and his pals are pulled down, then the ED will end up pulling down the pants of Modi and his cohorts.
The full horror will be exposed.
And if one thinks the common boss sitting on top of the Anthill will allow that to happen, one can keep dreaming.