On Friday, the Enforcement Directorate (ED) took major action against Bhushan Steel Limited in the bank fraud case. Under this, the company’s immovable assets worth Rs 367 crore have been attached in Delhi, Mumbai, Kolkata and some cities of Odisha. Let us tell you, ED has been investigating the case of money laundering related to bank fraud against Bhushan Steel Limited for a long time.
The property was in the name of fake companies
It was informed by ED that under PMLA, an order has been issued to attach the properties made in the name of benamidars/fake companies through fake directors. Let us tell you, under the corporate insolvency resolution process, Tata Steel has acquired the business of Bhushan Steel in 2018.
Bhushan Steel MD created fake companies
ED said Bhushan Steel MD Neeraj Singal and associates had created ‘several fake companies’. Through a series of these companies, the money taken as loan from the bank was transferred from one company to another. This money was sent for capital investment, purchase of property and other personal purposes which was not the intention of the lending banks. To do this many fake documents were also created.
Neeraj Singal has been arrested
BSL Managing Director Singal was arrested by the ED in June, 2023 and is currently in jail under judicial custody. The agency had arrested the company’s former vice president (banking) Pankaj Tiwari, former vice president (accounts) Pankaj Aggarwal, former chief financial officer Nitin Johri, Singal’s sister Archana Mittal and brother-in-law Ajay Mittal in January. Of these, Archana has got bail while all the other accused are in judicial custody.
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