A special court in Mumbai denied bail to two former executives arrested in connection with the IL&FS financial irregularities case being probed by the Enforcement Directorate.
Former joint managing director of the company Arun K Saha, and Managing Director of its transportation network K Ramchand, who were arrested in June under the Prevention of Money Laundering Act, sought bail on the ground that the enforcement agency had missed the deadline to file the chargesheet.
As per rules, the probe agency has to file a prosecution complaint within 60 days of the arrest.
Enforcement Directorate lawyer Sunil Gonsalves argued that the complaint was submitted on Friday, well within the stipulated time but it was stuck in administration.
Even if the documents were not annexed to the complaint with the registry, it doesn't entitle the accused to get bail, he told the court.
Special Judge Prashant P Rajvaidya accepted Enforcement Directorate's submission and denied bail to Saha and Ramchand.
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 Small industrial Development Bank of India, and along with its subsidiaries has a combined debt of over 91,000 crore.
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