NEW DELHI : Enforcement Directorate on Friday attached movable and immovable properties worth Rs 367 crore of Bhushan Steel Limited under the provisions of Prevention of Money laundering Act (PMLA), 2002.
The immovable properties were situated in Delhi, Mumbai, Kolkata and Odisha. The attached properties were held in the name of proxies or shell entities through dummy directors. ED initiated investigations on the basis of Prosecution Complaint filed by Serious Fraud Investigation Office (SFIO) against Bhushan Steel Limited.
As per ED investigations, erstwhile managing director of Bhushan Steel Limited (BSL) Neeraj Singal and associates formed several shell companies. They rotated funds from one company to another through a network of multiple entities.
The funds were circulated to infuse capital, buy property and for other personal purposes not intended by the banks. Investigations further revealed that promoters, directors and the officials of BSL prepared forged documents and made fraudulent representations before the banks to discount Letter of Credits (LCs) and diverted the funds back into their own companies with malafide intentions. Funds were misappropriated against the fabricated LCs created in favour of JSW Steel limited and Hindustan Zinc Limited.
‘Former MD routed funds’
As per ED probe, erstwhile MD of Bhushan Steel Limited (BSL) Neeraj Singal and associates formed several shell companies. They rotated funds from one company to another through a network of multiple entities