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Business News/ News / India/  ED arrests five people in bank loan 'fraud' case against Bhushan Steel
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ED arrests five people in bank loan 'fraud' case against Bhushan Steel

ED arrests five people in bank loan 'fraud' case against erstwhile Bhushan Steel Ltd: Officials

Bhushan Steel case: The money laundering case stems from a charge sheet filed by the Serious Fraud Investigation Office (SFIO), an investigative agency under the ministry of corporate affairs.Premium
Bhushan Steel case: The money laundering case stems from a charge sheet filed by the Serious Fraud Investigation Office (SFIO), an investigative agency under the ministry of corporate affairs.

The Enforcement Directorate has arrested five persons in connection with an alleged 56,000 crore bank loan fraud linked money laundering case against erstwhile Bhushan Steel Ltd (BSL), news agency PTI reported citing officials familiar with the development.

Those taken into custody are Pankaj Kumar Tiwari, the former vice president banking of the company, former VP accounts Pankaj Kumar Agarwal, ex-chief financial officer Nitin Johri, Ajay Mittal, the brother-in-law of former promoter Neeraj Singal, and Ajay Mittal's wife and sister of Neeraj Singal, Archana Mittal.

After completing the corporate insolvency resolution process (CIRP), Bhushan Steel was taken over by Tata Steel Ltd in 2018.

According to the ED, Bhushan Steel Limited's former Managing Director Neeraj Singal and his associates formed several shell companies and the promoters and entities linked to BSL "rotated funds from one company to another through a chain of multiple entities" as part of an alleged bank loan fraud.

The promoters, directors and the officials of BSL prepared "forged" documents and made fraudulent representations before the banks to discount LCs (Letters of Credit) and "diverted" the funds back into their own web of companies with "malafide" intentions causing wrongful loss to the State Bank of India and the Punjab National Bank.

"During the search operations, various incriminating documents and digital records were seized. The digital evidence was found hidden with key employees/confidants of Neeraj Singal," it said.

The agency also seized 72 lakh in cash, foreign currency/travellers cheques worth about 52 lakh and three luxury cars (Mercedes Benz) having acquisition value of 4 crore during the raids.

Singal was arrested by the ED in June this year and he is currently in judicial custody. It had also attached assets worth 61.38 crore in this case.

The money laundering case stems from a charge sheet filed by the Serious Fraud Investigation Office (SFIO), an investigative agency under the ministry of corporate affairs.

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Published: 12 Jan 2024, 01:15 PM IST
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