ED quizzes Rajan Shirodkar, Unmesh Joshi

IL&FS gave loans and made equity investments worth ₹860 crore in Kohinoor CTNL, a firm started by Joshi, Shirodkar and Thackeray in 2005.

The enforcement directorate (ED) on Tuesday questioned Rajan Shirodkar, builder and former business partner of Maharashtra Navnirman Sena (MNS) chief Raj Thackeray, in connection with their ongoing investigation into a money laundering case involving the Infrastructure Leasing & Financial Services (IL&FS) group. Unmesh Joshi, son of former Maharashtra chief minister Manohar Joshi, was questioned for the second consecutive day on Tuesday. Joshi and Shirodkar will be questioned again on Wednesday, while Thackeray has been summoned on Thursday.

ED sources stated they are scanning the details of the deals to check if there was any fund diversion – where the money is used for purposes other than for which it is given. (HT image)

IL&FS gave loans and made equity investments worth ₹860 crore in Kohinoor CTNL, a firm started by Joshi, Shirodkar and Thackeray in 2005. ED sources stated they are scanning the details of the deals to check if there was any fund diversion – where the money is used for purposes other than for which it is given. “I had come here to submit documents…They have called me on Wednesday,” said Shirodkar when he walked outside ED office in the evening. When asked about the allegations of IL&FS deal being questioned, Shirodkar said he will talk later. Joshi who walked outside ED office at the same time said “he was giving the required information to the ED”, but refused to elaborate on the nature of the probe. ED sources said Kohinoor CTNL allegedly acquired loan without adequate security and also defaulted on repayments. Of the ₹860 crore, ₹225 crore was the initial investment in Kohinoor CTNL. Kohinoor Square was built in Dadar, but mired in litigation, the project suffered a slowdown. In 2008, IL&FS suffered a loss by selling its Kohinoor CTNL shares for ₹90 crore, taking a hit of ₹135 crore. Thackeray also sold his shares in 2008. In 2011, Kohinoor CTNL entered into an agreement to sell certain premises of the skyscraper to IL&FS and settle the amount, but it defaulted again. Following Kohinoor CTNL’s inability to repay its loans, Joshi lost control of the company to Sandeep Shikre and Associates in January.