Bhushan Steel MD Neeraj Singhal Arrested: ED arrests former MD in bank fraud case of Rs 56,000 cr
This is to inform you that Enforcement Directorate made a big development in a bank fraud case of Rs 56,000 crore. Reportedly, ED has arrested the former managing director of Bhushan Steel Ltd in the aforementioned bank fraud case. Furthermore, the enforcement directorate conducted a search operation at the residence of the former MD of Bhushan Steel Ltd which led to his arrest. Bhushan Steel Ltd’s former MD’s arrest is the biggest shocking arrest in the industry as he is a suspect in the bank fraud case of Rs 56,000 crore, TOI reported. You are asked to stick with this page and must go through it till the end to know everything imperative in this story. Swipe down the page.
Bhushan Steel MD Neeraj Singhal Arrested
The former managing director of Bhushan Steel Ltd, Neeraj Singhal also served as the promoter of the company. Now he is being investigated by the Enforcement Directorate after a search operation at his house in connection with the ED’s probe in a fraud case of Rs 56000 crore. TOI also stated that Neeraj Singhal has been taken into remand after the special court granted. The court allowed Neeraj Singhal’s remand till June 20. Continue reading this article and know more details in the next section.
As per the reports, Enforcement Directorate’s investigation is based on the prosecution complaint lodged against the former MD of Bhushan Steel Ltd, Neeraj Singhal by the Serious Fraud Investigation Office. Furthermore, the agency also accused Bhushan Steel Ltd’s former MD of forming an array of dummy companies and transferring funds from one company to another through a chain of multiple entries to layer and integrate the funds. The Serious Fraud Investigation Office claimed, “The funds were circulated to infuse capital, buy a property and other personal purposes,” Take a look at the next section and know more.
The Enforcement Directorate added that during the investigation it was known that the directors or promoters and the officials of Bhushan Steel Ltd prepared forged reports and documents. The company also made fraudulent representations to the banks to discount Letters of Credit to divert the funds back into their own web of companies with malafide intentions. The ED kept on claiming that the funds were misappropriated against the LCs created in favor of Hindustan Zinc Ltd and JSW Steel Ltd. The funds were further wrongfully diverted into BSL and other companies causing losses to Punjab National Bank and State Bank of India.
