As part of an investigation under PMLA, 2002 against the Promoters of M/s Bhushan Steel Limited (BSL) in relation to a bank fraud of Rs 56,000 Crore, the Directorate of Enforcement (ED) conducted search and survey operations on October 13, 2023, at 30 locations in Delhi NCR, Haryana, Kolkata, Mumbai, and Bhubaneswar.
Serious Fraud Inquiry Office’s [SFIO] Prosecution Complaint served as the foundation for ED’s inquiry. Scheduled offences under the PMLA Act were mentioned in the aforementioned complaint.
According to the ED probe, the former M/s Bhushan Steel Limited, its managing director Neeraj Singal, and his colleagues created a number of shell companies. They passed money back and forth between businesses through a network of various organizations. The money was spent on property purchases, capital infusions, and other non-banking-related personal expenses.
Investigations further revealed that M/s Bhushan Steel Limited’s promoters, directors, and officials prepared forged documents, presented false information to banks in order to have LCs (Letters of Credit) discounted, and then misappropriated the funds into their own network of companies with ulterior motives, causing loss to the State Bank of India and Punjab National Bank.
The land in Village Karede Budruk, District Raigad, Maharashtra, the plot in Faridabad, Haryana, and the plot in District Kamrup, Assam, all valued at Rs 61.38 crore, had already been temporarily attached by the ED. Later, the Ld. The Adjudicating Authority confirmed the provisional attachment order. On June 9, 2023, Neeraj Singal, the former managing director of M/s Bhushan Steel Limited, was also detained by the ED. He is currently being held in judicial custody.
Various damning documents and digital records were found and seized during the search activities. During the search, it was discovered that Neeraj Singal’s top colleagues and confidants had hidden digital evidence. Three luxury cars (Mercedes Benz) with an estimated purchasing value of Rs. 4 crore (approx. ), 72 lakh rupees in cash, 52 lakh rupees (approx.) in foreign currency, and have been confiscated. Additional research is being done.
