NEW DELHI: The Enforcement Directorate on Wednesday arrested two former IL&FS executives in connection with its money laundering probe in alleged financial irregularities case, officials said.

They said former joint MD of the company Arun K Saha and MD of transportation network K Ramchand were arrested late evening in Mumbai under the Prevention of Money Laundering Act ( PMLA ).

These are the first arrests in this case by the Enforcement Directorate.

The two will be produced before a special PMLA court in Mumbai on Thursday, they said.

The central agency had filed a money laundering case in February this year and had twice raided a number of former executives in order to obtain additional evidence.

The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September, 2018.

IL&FS has defaulted on payment of loans to SIDBI. Along with its subsidiaries, it has a combined debt of over Rs 91,000 crore.

The ED's case is based on an FIR filed before the Economic Offences Wing (EOW) of the Delhi Police in December last year.

Ashish Begwani, director of Enso Infrastructures (P) Ltd, had filed the case against officials of IL&FS Rail Ltd for allegedly causing Rs 70 crore loss to his company by fraudulent means.

Begwani had alleged in his complaint that in August 2010, he was approached by two officials of IL&FS Transportation Networks Ltd and he had invested Rs 170 crore in IL&FS Rail Ltd, a special purpose vehicle for Gurugram Metro project, in order to take its 15 per cent shares.

