The Enforcement Directorate (ED) announced on Friday that it has provisionally attached immovable assets worth Rs 367 crore in Delhi, Mumbai, Kolkata, and various cities in Odisha. This action is part of a money-laundering investigation connected to an alleged bank-loan fraud involving Bhushan Steel Limited (BSL). The assets were found to be held under the names of benamidars/shell entities with dummy directors to conceal them from law enforcement agencies, the ED stated in a release issued under the Prevention of Money Laundering Act (PMLA).
Following the completion of 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 establishing several shell companies and engaging in fund rotation among these entities. Funds were reportedly circulated to infuse capital, purchase property, and for personal purposes unrelated to bank intentions.
The agency alleges that its investigation uncovered forged documents and fraudulent representations made by BSL promoters, directors, and officials to banks for discounting letters of credit (LCs). The diverted funds, obtained through fabricated LCs in favor of JSW Steel Limited and Hindustan Zinc Limited, were redirected to other associated companies, resulting in losses for the State Bank of India and Punjab National Bank.
Neeraj Singal was arrested by the ED in June 2023 and remains in judicial custody. The ED’s money-laundering case stems from a chargesheet filed against the company and its promoters by the Serious Fraud Investigation Office (SFIO), under the Ministry of Corporate Affairs.
In January, the agency arrested several individuals including Pankaj Tewari, former vice-president (banking); Pankaj Agarwal, former VP (accounts); Nittin Johri, former chief financial officer; Ajay Mittal, brother-in-law of former promoter Neeraj Singal; and Archana Mittal, Ajay Mittal’s wife and Neeraj Singal’s sister. They were accused of knowingly receiving proceeds of crime amounting to Rs 80 crore, and mortgaging BSL properties to divert funds to Neeraj Singal’s family.
While Archana Mittal has been granted bail, the others remain in judicial custody.
