On Friday, the former CEO and MD of IL&FS Financial Services, Ramesh Bawa, was arrested in Delhi according to an Economic Times report citing sources. This is the second arrest made by the Serious Fraud Investigation Office (SFIO), the investigation arm of the Ministry of Corporate Affairs (MCA) in relation to the IL&FS case.

Bawa's arrest comes after the Supreme Court recently refused to grant him protection from arrest. Earlier, Hari Sankaran, the former vice chairman of IL&FS was arrested in the same case. They have been arrested under section 447 of the Companies Act that allows the SFIO to make an arrest for committing fraud.

The incumbent government appointed IL&FS board in a recent press conference said that IL&FS Financial Services has a total exposure of Rs 18,800 crore, which includes Rs 10,700 crore to external agencies and the remainder is with IL&FS group companies.

The SFIO is also presently investigating the irregularities in IL&FS Financial Services.