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Mumbai: The Enforcement Directorate (ED) has summoned senior Nationalist Congress Party (NCP) leader Jayant Patil for questioning on Friday for the alleged financial irregularities at the debt-hit Infrastructure Leasing and Financial Services (IL&FS). As per ED sources, they intend to probe the allegations of Patil being a beneficiary, via his aides, in the case.

The agency is investigating allegations that a sub-contractor of the IL&FS had made payments to certain individuals, suspected of being aides of Patil, who at the time was a public servant, said an ED source, adding, “The agency has already questioned the individuals, who claimed to have made the payment and carried out searches as part of the verifications.”

The sub-contractor at the time of the alleged incident was connected to an infrastructure project in the state, the source added.

ED’s summons to Patil came a day after its searches in Mumbai at five locations on Wednesday against two former IL&FS audit firms, BSR and Associates and Deloitte Haskins and Sells.

Referring to the ED searches, Deloitte’s spokesperson said, “This routine inquiry is in respect to an ongoing matter regarding a former client and we continue to extend our full cooperation to the authorities.”

In a statement issued on Thursday, the NCP leader said: “Yesterday was my marriage anniversary and the same evening the ED sent me a notice. It has no specific reason mentioned as such but tried to get information and I came to know that it is related to some IL&FS firm. I had no relation with the firm in my entire life, have never taken a loan from them, never visited their office or spoken to them. For the next few days, I will be busy with family functions and thus will seek three to four days for appearing. The country knows why ED issues notices, they also send notices on days convenient to them. My political career is an open book and never done anything wrong, never done any illegal money transaction thus I’m sure there will not be any problem for me.”

ED’s probe began in February 2019 based on a Delhi Police Economic Offences Wing (EOW) case filed against IRL, ITNL (group companies of IL&FS), its officials and others. ED had also taken cognisance of a complaint filed by the SFIO against IL&FS Financial Services (IFIN) and its officials.

As part of its probe, the ED had arrested A K Saha, one of the former members of the committee of directors of IFIN, and K Ramchand, former managing director of ITNL. ED had subsequently filed a chargesheet alleging that the senior management of IL&FS had indulged in acts of commissions and omissions leading to illegal personal gains to them at the expense of the firm. It was alleged a few IL&FS former officials had allegedly disbursed loans through various private firms without conducting due diligence.

It was alleged that there had been a substantial hike in the proceeds from a performance incentive, Performance Related Perquisite (PRP), to some former officials during the last three financial years even though there was a substantial liquidation crisis in the IL&FS Group then. The chargesheet had also accused that funds were also taken out from the IL&FS Employee Welfare Trust.

This is not the first time that the agency has summoned a senior state politician in the probe. In August 2019, the agency had questioned Maharashtra Navnirman Sena (MNS) chief Raj Thackeray and recorded his statement as part of the probe related to alleged irregularities with IL&FS’s loans and equity investment worth ₹860 crore in a firm, Kohinoor CTNL Infrastructure Co Private Limited.

Kohinoor CTNL, which was developing the Kohinoor Square tower in Dadar West, had allegedly defaulted on an IL&FS loan worth ₹135 crore. The company was founded in 2003 by former CM Manohar Joshi’s son Unmesh Joshi, Raj Thackeray and a builder to purchase the Kohinoor Mill-3 for ₹421 crore. IL&FS allegedly invested around ₹225 crore in the company in the initial stages. In 2008, however, IL&FS allegedly surrendered its shares for only ₹90 crore, suffering a loss of ₹135 crore.

Thackeray has denied any wrongdoing or a role in suspicious transactions linked with the firm.