The Central Bureau of Investigation (CBI) has registered a case against Mumbai-based IL&FS Energy Development Company Limited and several of its top officials for allegedly defrauding Canara Bank of ₹212.34 crore through a criminal conspiracy involving loan diversion and fund siphoning. The agency also conducted searches at multiple premises linked to the accused following the case registration on 21 October, an official said on Saturday, 24 October.

Who Has Been Booked

The case was registered on the complaint of Canara Bank, Circle Office, Bandra (East), Mumbai. The accused named in the First Information Report include IL&FS Energy Development Company Limited and its Managing Directors and Directors: Sunil Wadhwa, Anoop Seth, Hari Sankaran, Ramesh Chandra Bawa, and Arun Kumar Saha, along with unknown public servants and unknown private persons.

The officials have been booked for criminal conspiracy and cheating under the Indian Penal Code, as well as for offences under the Prevention of Corruption Act, which points to the alleged involvement of public servants in facilitating the fraud.

How the Alleged Fraud Was Carried Out

According to the CBI, the accused allegedly conspired to obtain a term loan of ₹100 crore from the erstwhile Syndicate Bank — now merged into Canara Bank — through its LCB Branch, Mumbai, and an additional $50 million from the bank's London Branch. The funds were allegedly not deployed for the sanctioned purpose. Instead, investigators allege the money was diverted and siphoned off through associate companies, causing a wrongful loss of ₹212.34 crore to the bank.

This is a pattern that has recurred across several IL&FS group entities since the conglomerate's near-collapse in 2018, when a liquidity crisis exposed a web of alleged financial mismanagement across its subsidiaries.

Searches and Evidence Seized

Following registration of the case, the CBI conducted coordinated searches at multiple premises in Mumbai, Delhi, and Noida linked to the named directors. Investigators recovered and seized incriminating materials including bank documents, deposit slips, mutual funds portfolio records, bank account and property details of the directors, and company ledgers — all deemed relevant to the ongoing investigation.

Investigation Status and What Comes Next

The CBI has stated that its investigation is continuing to establish the full extent of the alleged conspiracy, determine the precise role of each accused — including any public servants — and trace the end-use of the diverted loan funds. The inclusion of 'unknown public servants' in the FIR signals that the probe may widen to examine whether bank officials or government functionaries enabled the alleged fraud. Further arrests or summons to the named directors are possible as the agency analyses the seized documents.