Special court denies bail to ex-IL&FS chairman Ravi Parthasarathy

A special court has denied bail to Ravi Parthasarathy, former Chairman of the bankrupt Infrastructure Leasing and Financial Services (IL&FS) and arrested by the Economic Offences Wing of state police, for allegedly defrauding investors to the tune of Rs 200 crore. Parthasarathy was refused bail recently by the Special Court constituted under the Tamil Nadu Protection of Interest of Depositors (in Financial Establishment) Act.

Parthasarathy, one of the accused in the case, was arrested on June 9 for various offences under the IPC and the TNPID Act by the Economic Offences wing-II in Guindy and remanded in judicial custody.

In his bail application, Parthasarathy stated he had resigned as director and non-executive chairman of IL&FS and also as a nominee director of other group companies including ITNL in 2018 itself.


ITNL is a company engaged in building of toll roads and bridges and as such it is not a financial establishment for the purpose of attraction of Section 5 read with section 2(3) of TNPID Act.

The police had no jurisdiction and they had the jurisdiction only with respect to incorporated financial establishment. The petitioner is a senior citizen with multiple health problems, he added.

Rejecting the submissions and disposing of other intervening petitions from the affected persons/parties, the special court presiding officer M Jothiraman said that the contention of the petitioner that the TNPID Act is not applicable, cannot be entertained.

The jail authorities can make available the medical facilities to the accused. Hence, he is not entitled to bail on health grounds.

As pointed out by the Special Public Prosecutor, the investigation is in the preliminary stage.