CBI files FIR against IL&FS Energy and top directors over Rs 212 crore Canara Bank fraud
Central agencies step up enforcement against corporate loan defaults as raids across Mumbai, Delhi and Noida uncover evidence of siphoned funds.
Federal investigators have launched a criminal case against IL&FS Energy Development Company Limited and its top leadership for allegedly defrauding Canara Bank of Rs 212.34 crore by diverting public sector funds meant for clean energy infrastructure.
Following a formal complaint from Canara Bank’s Bandra East Circle Office in Mumbai, the Central Bureau of Investigation registered the First Information Report on 21 October. Agency teams subsequently conducted raids across Delhi, Mumbai and Noida, seizing property records, bank deposit slips, mutual fund portfolio documents and internal corporate ledgers.
Loan facilities and alleged diversion
The case centres on credit lines originally sanctioned by the erstwhile Syndicate Bank, which has since merged with Canara Bank as part of the government’s public sector banking consolidation reforms.
| Credit facility | Sanctioning branch | Intended purpose | Alleged misuse |
|---|---|---|---|
| Rs 100 crore term loan | Large Corporate Branch, Mumbai | Solar and wind energy project financing | Siphoned to associate entities |
| USD 50 million loan | London branch | Onward lending for infrastructure SPVs under ECB norms | Diverted for non-sanctioned activities |
According to CBI investigators, company officials entered into a criminal conspiracy to obtain the credit facilities under the guise of funding renewable power ventures. A forensic audit commissioned by Canara Bank later established that the funds were systematically routed into group and associate companies rather than utilised for approved project expenditure.
Executives named in the FIR
The CBI FIR names the firm alongside key former directors and executives:
- Sunil Wadhwa, former Managing Director
- Anoop Seth, former Director
- Hari Sankaran, former Director
- Ramesh Chandra Bawa, former Director
- Arun Kumar Saha, former Director
Unknown public servants and private individuals have also been cited in the complaint. All key accused face charges under Indian Penal Code provisions for criminal conspiracy and cheating, along with relevant sections of the Prevention of Corruption Act.
Broader context
IL&FS Energy Development Company is a subsidiary of Infrastructure Leasing & Financial Services, whose 2018 financial collapse prompted strong state action to clean up corporate governance and protect public sector lenders.
A forensic audit revealed that IL&FS Energy misrepresented its balance sheet to conceal its financial stress, backing transfers with inadequate documentation and questionable accounting entries. CBI officials confirmed that ongoing inquiries aim to map the full paper trail of the siphoned money and establish accountability among bank officials who oversaw the approvals.
Key numbers
| What | Figure | Source |
|---|---|---|
| Total alleged loss to Canara Bank | Rs 212.34 crore | Canara Bank forensic audit and CBI FIR |
| Rupee term loan facility | Rs 100 crore | CBI FIR |
| Foreign currency loan facility | USD 50 million | CBI FIR |
| Date FIR registered | 21 October 2026 | Central Bureau of Investigation |
In this story
| Name | Role in the story |
|---|---|
| Central Bureau of Investigation | Investigating agency that registered the FIR and executed searches. |
| Arun Kumar Saha | Former director named as accused in the CBI FIR. |
| Sunil Wadhwa | Former executive named as accused in the CBI FIR. |
| IL&FS Energy Development Company Limited | Subsidiary firm accused of siphoning loan funds. |
| Canara Bank | Lender bank that suffered wrongful loss and filed the criminal complaint. |
| Anoop Seth | Former executive named as accused in the CBI FIR. |
| Ramesh Chandra Bawa | Former director named as accused in the CBI FIR. |
| Hari Sankaran | Former director named as accused in the CBI FIR. |
