A probe conducted by the Serious Fraud Investigation Office (SFIO) has found that IL&FS Financial Services (IFIN), the unit of debt-laden IL&FS, gave out loans in exchange of favours and violated RBI lending guidelines, reported LiveMint.

In its charge sheet, the SFIO stated that key management personnel at IFIN had a trade-off with C Sivasankaran of Siva group of companies, said the report.

Sivasankaran has been named co-accused along with 29 other entities and individuals under Section 447 of Companies Act and under provisions of Indian Penal Code for causing loss to the public, the report added.

The development comes after allegations emerged that IFIN had extended loans to several companies in order to avoid default on its debt repayments.

First Published:Jun 4, 2019 9:49 AM IST