NEW DELHI:
ED
has attached
properties
worth Rs 367 crore of
Bhushan Steel Ltd
, situated in Delhi, Mumbai, Kolkata and Odisha. The attached properties were held in the name of benamidars/shell entities through dummy directors so as to conceal the assets and to ensure that they are out of reach of investigation, the agency said.
According to ED, Bhushan Steel Limited and its MD Neeraj Singal and associates formed shell companies, rotated funds received from banks through a chain of multiple entities and bought properties for personal gains.
“Investigations revealed that promoters/directors and officials of BSL prepared forged documents and made fraudulent representations before banks to discount letter of credits (LCs) and diverted the funds back into their own companies with mala fide intentions,” ED said.
The agency further said that funds were misappropriated against the fabricated LCs created in favour of JSW Steel Ltd and Hindustan Zinc Ltd. The misappropriated funds were diverted to other group/associated companies, causing wrongful loss to the SBI and Punjab National Bank.
Earlier, ED had attached assets worth Rs 61 crore in Nov 2021 and a search operation was also conducted on Neeraj Singal on June 9 last year when he was arrested. Singal is currently in judicial custody. Chargesheets have been filed in the case.
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