Bhushan Steel says SFIO questioned chairman Brij Bhushan Singal
New Delhi: Debt-laden Bhushan Steel on Friday said its chairman B.B. Singal was called for questioning by the Serious Fraud Investigation Office (SFIO) on Thursday in a case pertaining to alleged siphoning of funds worth over Rs1,000 crore.
Responding to a clarification sought by the BSE, Bhushan Steel said, “Yes, B B Singal, Chairman appeared before SFIO on March 8, 2018, in compliance with the summon issued in this regard.” On Thursday, a person in the know said that the SFIO had questioned Singal in the national capital with regard to alleged siphoning of funds.
The agency, which comes under the corporate affairs ministry, has been probing allegations of fund diversions at the company since last year. The diversion of funds is estimated to be more than Rs1,000 crore, the person added.
Bhushan Steel is one of the 12 non-performing accounts referred by the Reserve Bank of India to the National Company Law Tribunal (NCLT) for insolvency proceedings. The company owes more than Rs44,000 crore to its lenders.
In recent weeks, the SFIO has been asked to investigate a significant number of companies for fraudulent activities, especially those related to diamond merchants Nirav Modi and Mehul Choksi in the Rs12,700 crore Punjab National Bank fraud.
Last month, the ministry ordered the SFIO to probe around 110 companies and about 10 limited liability partnerships related to Modi and Choksi. Besides, the white collar crime investigation agency has already questioned various bank officials with regard to the scam.