The Enforcement Directorate (ED) announced on Friday that it has seized immovable assets valued at Rs 367 crore in Delhi, Mumbai, Kolkata, and certain cities in Odisha as part of a money-laundering investigation related to an alleged bank-loan fraud involving Bhushan Steel Limited (BSL).
Under the Prevention of Money Laundering Act (PMLA), a provisional order has been issued to attach assets held in the names of benamidars/shell entities through dummy directors to conceal them from law enforcement agencies, according to the ED’s statement.
After completing the corporate insolvency resolution process (CIRP), Tata Steel Limited acquired BSL in 2018. The ED has accused BSL, its Managing Director Neeraj Singal, and associates of creating several shell companies and circulating funds among them for unauthorized purposes.
The agency claims that BSL’s promoters, directors, and officials forged documents, made fraudulent representations to banks, and misappropriated funds against fabricated letters of credit (LCs) in favor of JSW Steel Limited and Hindustan Zinc Limited. The misappropriated funds were then diverted to other group/associated companies, causing wrongful losses to the State Bank of India and the Punjab National Bank, according to the ED.
Neeraj Singal was arrested by the ED in June 2023 and is currently in jail under judicial custody. The ED’s money-laundering case originated from a chargesheet filed by the Serious Fraud Investigation Office (SFIO) against the company and its promoters.
In January, the ED arrested former BSL Vice President Pankaj Tewari, former Vice President (Accounts) Pankaj Agarwal, former Chief Financial Officer Nittin Johri, Ajay Mittal, brother-in-law of former promoter Neeraj Singal, and Ajay Mittal’s wife Archana Mittal. They were accused of knowingly receiving proceeds of crime and mortgaging BSL properties to route funds to Neeraj Singal’s family.
Archana Mittal has been granted bail, while the others are in judicial custody.
