CBI issues lookout notice for Sanjay Singhal, ex-CMD of Bhushan Steel 

The agency also alleged that the accused entered into a criminal conspiracy with each other and public servants to cheat banks.

Published: 25th April 2019 08:21 AM  |   Last Updated: 25th April 2019 08:21 AM   |  A+A-

CBI Headquarters

CBI Headquarters (File Photo | PTI)

By Express News Service

NEW DELHI:  The Central Bureau of Investigation (CBI) on Wednesday issued a ‘Look Out Circular’ against former Chairman and Managing Director of Bhushan Steel, Sanjay Singhal, and vice-chairman of the company Aarti Singhal in a fraud case worth Rs 2,348 crore. 

The agency said the company — fully acquired and renamed in 2018 by Tata Steel — through its directors/staff, fraudulently diverted Rs 2,348 crore from loan accounts of Punjab National Bank (Delhi and Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (Kolkata) into the accounts of various companies or shell companies without any obvious purpose and thereby misused the funds. 

“It was further alleged that the company availed various loan facilities from 33 banks/financial institutions from 2007-2014 to the tune of Rs 47,204 crore and defaulted on repayments. Subsequently, lead bank PNB declared the account as an NPA (non-performing asset), followed by other banks and financial institutions,” a statement by the central investigating agency said.

The agency also alleged that the accused entered into a criminal conspiracy with each other and public servants to cheat banks. “The accused dishonestly and fraudulently diverted huge amounts of bank funds through companies/ shell companies/entities etc. and deliberately defaulted in repayment and also claimed inadmissible CENVAT credit etc,” the CBI added. The CBI had filed a case of corruption and criminal conspiracy against the company and several others. 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp