ED attaches assets worth Rs 25 crore belonging to Irani’s family


CHENNAI: Enforcement Directorate officials have provisionally attached assets worth more than Rs 25 crore belonging to the family members of Farouk M Irani, former managing director of First Leasing Co.

Irani was arrested in June by ED officials and is currently under judicial remand at Puzhal Central Prison. He was arrested for his role in non-banking finance company (NBFC) First Leasing under the Prevention of Money Laundering Act for falsifying documents and availing of loans to the tune Rs 522 crore from public sector banks. Irani is suspected to have enriched himself to the tune of about Rs 100 crore in the transactions.

ED officials attached Rs 51 crore of property belong to Irani and his family members in its investigation in June. In Wednesday’s investigations, a house in Kotturpuram worth Rs 18.5 crore and house in Sholinganallur, measuring 18,400 sq.ft and worth Rs 6.5 crore were attached. A Mercedes Benz car worth Rs 48 lakh and a Toyota Corolla worth Rs 18 lakh were also attached.

First Leasing Co was started in 1973 by Irani and industrialist A C Muthiag with an authorized capital of Rs 52.50 crore and paid-up capital of Rs 22.79 crore. First Leasing was listed on the BSE and NSE, but is no longer a traded stock and the company is currently under liqudation.

First Leasing’s first round of trouble emerged after an audit showed that there was a Rs 1,190-crore hole in its balance sheet. In 2014, Farouk Irani accused A C Muthiah and his men of ganging up against him and forging his signatures.