Former Bhushan Steel MD is detained by ED in connection with Rs. 56,000 crore bank fraud case

In conjunction with its investigation into a bank fraud case involving Rs 56,000 crore, Neeraj Singhal, the promoter and former managing director of Bhushan Steel Ltd, was detained by the Enforcement Directorate, who also conducted a search of his home.

A special judge in this location placed Singhal in ED custody until June 20.

A prosecution complaint brought by the Serious Fraud Investigation Office against Bhushan Steel and its directors is the basis for the ED’s investigation.

In order to layer and integrate the monies, the agency accuses Singhal of creating a number of dummy/shell firms and shifting money from one company to another via a series of duplicate entries.

The ED further asserted that the bank funds were stolen and used to pay fictitious LCs issued in the names of JSW Steel Ltd. and Hindustan Zinc Ltd., and that money was then misappropriated and transferred to BSL and other related businesses, causing unlawful losses to State Bank of India and Punjab National Bank.