Enforcement Directorate (ED) has filed a prosecution complaint against former top management of Bhushan Power and Steel Limited (BPSL) including Sanjay Singal, the then Chairman and Managing Director of BPSL and 23 others based in Delhi, Mumbai and Kolkata.

Accused Sanjay Singal who was arrested ED on November 22 last year, is in judicial custody. During the Prevention of Money Laundering (PMLA) investigation, ED has provisionally attached proceeds of crime valued at ₹204.31 crore in the form of immovable properties belonging to the group companies under Singal’s control.

The attached assets consist of movable and immovable properties in Delhi and London. Investigations under PMLA had revealed that an amount of ₹204.31 crores was diverted out of bank loan funds of BPSL, which were utilized for acquisition of assets in India and abroad by Singal.

ED initiated investigation under PMLA on the basis of first information report (FIR) filed by Central Bureau of Investigation in April last year. The FIR said that the top management did not use the bank funds for the purpose for which the same were sanctioned, committed forgery for the purpose of cheating, used forged documents and falsified the accounts causing wrongful loss to the lending banks, financial institutions, government exchequer and corresponding wrongful gain to themselves.

ED stated that Investigation under PMLA have so far revealed that the accused persons namely Singal and others had diverted huge amount of funds out of loans taken by BPSL from 33 banks and financial institutions during 2007 to 2014 which were used for creation of assets (including equity investment in BPSL and movable, immovable properties in Delhi and London) in the name of companies controlled by Singal.

So far, assets totaling to ₹4229.54 crores have been identified and provisionally attached under PMLA, ED officials stated.

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