The Enforcement Directorate (ED) has attached assets worth ₹367 crore in the money laundering case involving Bhushan Steel Limited and others. The immovable properties are located in Delhi, Mumbai, Kolkata, and Odisha.
On Friday, the agency said the attached properties were held in the name of “benamidars” and shell entities through dummy directors. It is conducting the probe based on a prosecution complaint filed by the Serious Fraud Investigation Office against Bhushan Steel Limited.
The ED investigations revealed that the erstwhile Bhushan Steel Limited [BSL] and its managing director, Neeraj Singal, along with his associates, had formed several shell companies. “They rotated funds from one company to another through a chain of multiple entities. The funds were circulated to infuse capital, buy property, and for other personal purposes,” it said.
The company promoters/directors and officials allegedly prepared bogus documents and made fraudulent representations before banks to discount Letter of Credits (LCs) and they diverted the funds back into their own companies. The funds were misappropriated against the “fabricated” LCs created in favour of JSW Steel Limited and Hindustan Zinc Limited. The misappropriated amount was diverted to the other group/associated companies, causing huge losses to the State Bank of India and the Punjab National Bank, as alleged.
Earlier, the ED had provisionally attached assets worth Rs.61.38 crore on November 8, 2021, and arrested Mr. Singal on June 9, 2023. He is currently in judicial custody. On August 8 last year, the agency filed a prosecution complaint against him and some other accused persons.
Another search operation was conducted in the case on October 13, 2023. Subsequently, Mr. Singhal’s sister Archana Mittal, brother-in-law Ajay Mittal; Nittin Johri (the then chief financial officer), Prem Tewari (the then vice-president, banking) and Prem Agarwal (the then vice-president, accounts) of Bhushan Steel were arrested.
“Ajay Mittal and Archana Mittal knowingly received proceeds of crime to the extent of ₹80 crore. They also mortgaged property of BSL [Bhushan Steel Limited] and routed the funds to the family of Neeraj Singal. Currently, Archana Mittal has been granted bail by the court, while all the other accused persons are in judicial custody,” said the agency.
