New Delhi: The Enforcement Directorate arrested on friday Neeraj Singhal, promoter and former managing director of Bhushan Steel Ltd, was searched at his residence in connection with the probe into the Rs 56,000-crore bank fraud case. Singhal has been remanded in ED custody till June 20 by a special court here.
The ED probe is based on a prosecution complaint filed by the Serious Fraud Investigation Office against Bhushan Steel and its directors.
The agency has accused Singhal of creating a series of dummy/shell companies, moving and integrating funds through a series of entries from one company to another. The agency claimed, “The money was circulated for capital infusion, property purchase and other personal purposes.”
The ED said, “During the course of investigation, it was revealed that the promoters/directors and officers of BSL prepared forged documents and made fraudulent representations to the banks to discount the letters of credit and diverted the funds back to the companies with malicious intent.” Caught in your trap.”
ED further claimed that bank funds were embezzled against fake LCs JSW Steel Ltd. and Hindustan Zinc Ltd. and the funds were further diverted to BSL and other associated companies, causing wrongful loss to State Bank of India and State Bank of India. Punjab National Bank,
The ED probe is based on a prosecution complaint filed by the Serious Fraud Investigation Office against Bhushan Steel and its directors.
The agency has accused Singhal of creating a series of dummy/shell companies, moving and integrating funds through a series of entries from one company to another. The agency claimed, “The money was circulated for capital infusion, property purchase and other personal purposes.”
The ED said, “During the course of investigation, it was revealed that the promoters/directors and officers of BSL prepared forged documents and made fraudulent representations to the banks to discount the letters of credit and diverted the funds back to the companies with malicious intent.” Caught in your trap.”
ED further claimed that bank funds were embezzled against fake LCs JSW Steel Ltd. and Hindustan Zinc Ltd. and the funds were further diverted to BSL and other associated companies, causing wrongful loss to State Bank of India and State Bank of India. Punjab National Bank,