New Delhi: A Delhi court has sent five individuals arrested in connection with an alleged Rs 56,000 crore bank loan fraud related to Bhushan Steel Ltd (BSL) to ED custody.
Special Judge Rajesh Kumar Goel of Rouse Avenue Court sent Ajay S. Mittal and Archana Mittal to ED custody until January 14, and Nitin Johri, Pankaj Kumar, and Pankaj Kumar Tiwari until January 15.
The Enforcement Directorate (ED) alleged that the promoters, directors, and officials of Bhushan Steel engaged in fraudulent activities, including forging documents and making false representations to banks.
Funds were misappropriated through fabricated Letters of Credit in favour of JSW Steel Limited and Hindustan Zinc Limited.
The judge stated: “Custodial interrogation of the accused persons is required to ascertain the further complicity of the accused persons in laundering the proceeds of crime and modus operandi adopted by them.”
The ED initiated the investigation based on a prosecution complaint filed by the Serious Fraud Investigation Office (SFIO) against Bhushan Steel Limited, invoking scheduled offences under the Prevention of Money Laundering Act (PMLA) 2002.
The investigation revealed that Bhushan Steel and its Managing Director, Neeraj Singal, formed shell companies to rotate funds, causing wrongful loss to State Bank of India and Punjab National Bank.
Assets worth Rs 61.38 crore were provisionally attached earlier. Neeraj Singal, already in judicial custody, faces charges, with a prosecution complaint filed against him and other accused on August 8, 2023.
The arrested individuals, including Ajay Mittal and Archana Mittal, allegedly received proceeds of crime, mortgaging BSL property to route funds to Singal’s family.
Nitin Johri and two others, former BSL employees, are accused of manipulating accounts, providing fake documents to banks, and actively participating in the diversion of bank funds.
