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The Serious Fraud Investigation Office (SFIO) has arrested Neeraj Singal, Managing Director of Bhushan Steel, for indulging in corporate fraud.
According to the Ministry of Finance and Corporate Affairs, he is accused of siphoning off funds of over ₹2,000 crore from the loans availed by Bhushan Steel Ltd (BSL), using more than 80 companies. The companies were used for rotation of funds through bogus loans and advances, investments, etc.
The investigation was carried out by the SFIO after complaints from various sources, an official release said, adding that Singal was produced before the court of competent jurisdiction on Thursday and was sent to judicial custody till August 14.
During the course of the investigation, the SFIO found that the erstwhile promoters used fraudulent means to divert/siphon off funds raised by the then management of BSL from public sector banks using several associate companies.
“This has led to wrongful losses to the banks and other investors in these companies,” it said.
“The erstwhile promoters/ directors of BSL have not been cooperating during the investigation till now. Apart from failing to appear before the investigation team, the material facts were also concealed,” it added.
After insolvency resolution, the ownership and control over BSL has been transferred to the Tata Group, it said.
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