New Delhi: Enforcement Directorate The (ED) arrested Neeraj Singhal, former promoter-cum-managing director of Bhushan Steel Limited (BSL), under the provisions of the Prevention of Money Laundering Act, 2002, after a search operation at his residence on June 9, for an amount of Rs 56,000 crore. Bank fraud case. Singhal The special PMLA court has sent him to 10-day ED custody till June 20.
The ED had initiated the probe on the basis of a complaint filed by the Serious Fraud Investigation Organization (SFIO) against M/s Bhushan Steel Limited and others.
It was found that Bhushan Steel Limited and its Director Singhal created a series of dummy/shell companies and transferred funds from one company to another, routed the funds through a series of entries and layered them around and Diverted to integrate funds. The money was circulated for investing capital, buying property and other personal purposes.
During investigation, it was revealed that the promoters/directors and officials of BSL prepared forged documents and made fraudulent representations before the banks to draw down letters of credit (LCs) and funneled the funds back into the net of their companies. malicious intent.
Funds were misappropriated against bogus LC drawn in favor of JSW Steel and Hindustan Zinc Limited, and the funds were further diverted to BSL and other group/associate companies causing wrongful loss to State Bank of India and Punjab National Bank,
In this connection, the Enforcement Directorate has attached agricultural land located at Karde Budruk village in Raigad district of Maharashtra, a plot of land measuring 14,242.38 square meters located at Faridabad in Haryana and another plot of land measuring 1.49 acres located in Kamrup district of Assam. A total of Rs 61.38 crore, which was later confirmed by the Adjudicating Authority.
The ED had initiated the probe on the basis of a complaint filed by the Serious Fraud Investigation Organization (SFIO) against M/s Bhushan Steel Limited and others.
It was found that Bhushan Steel Limited and its Director Singhal created a series of dummy/shell companies and transferred funds from one company to another, routed the funds through a series of entries and layered them around and Diverted to integrate funds. The money was circulated for investing capital, buying property and other personal purposes.
During investigation, it was revealed that the promoters/directors and officials of BSL prepared forged documents and made fraudulent representations before the banks to draw down letters of credit (LCs) and funneled the funds back into the net of their companies. malicious intent.
Funds were misappropriated against bogus LC drawn in favor of JSW Steel and Hindustan Zinc Limited, and the funds were further diverted to BSL and other group/associate companies causing wrongful loss to State Bank of India and Punjab National Bank,
In this connection, the Enforcement Directorate has attached agricultural land located at Karde Budruk village in Raigad district of Maharashtra, a plot of land measuring 14,242.38 square meters located at Faridabad in Haryana and another plot of land measuring 1.49 acres located in Kamrup district of Assam. A total of Rs 61.38 crore, which was later confirmed by the Adjudicating Authority.