The companies have a total exposure of ₹10,000 crore towards crisis-ridden firm

The Enforcement Directorate has called in for questioning, directors of 14 companies as part of a money laundering probe into the affairs of crisis-ridden Infrastructure Leasing and Financial Services Ltd. (IL&FS).

SFIO charge sheet

A day after the Serious Fraud Investigation Office (SFIO) filed its first charge sheet on the irregularities at IL&FS and ILFS Financial Services Ltd. (IFIN), sources said a total of 48 companies with debt obligations and borrowing exposure towards IL&FS and IFIN were under the ED’s scanner as well.

However, for now, the interrogation would include the first batch of executives specifically from the 14 firms which have total exposure to the tune of ₹10,000 crore towards IL&FS, sources in the ED said. The SFIO, in its charge sheet filed on May 30, named some of the companies that are part of the ED investigation, including Siva India Commercial Traders, ABG, A2Z and Parsvanath Group. However, officials said some of the other big infrastructure firms based out of Mumbai, Pune, New Delhi and Chennai too were under the scanner.

“We are looking at the firms carrying out major infrastructure works, but were given loans without sufficient collateral, and later failed to service the debts. As many as 14 of the 48 companies were severely stressed. Yet the loans were processed. Our focus is on these firms to see if any dirty money was channelled through them,” a senior ED official said. The ED, had on May 21, carried out searches at the homes of directors Rajesh Kotian, Shehzaad Dalal, Manu Kochhar and Mukund Sapre. They had been on the boards of IL&FS Transportation Networks India Ltd. (ITNL), IFIN, IL&FS Investment Advisors LLC and IL&FS Investment Managers Ltd., officials said.