Delhi HC issues notice to centre over Bhushan Steel MD bail plea

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New Delhi, Aug 20: The Delhi High Court on Monday issued a notice to the central government over the bail plea of Bhushan Steel Limited’s promoter and Managing Director Neeraj Singhal. 

Singhal approached the high court against his arrest by Serious Fraud Investigation Office (SFIO) on August 9.

Further hearing on the matter will take place at 2:15 PM tomorrow.

Singal has been charged with siphoning off more than Rs2,000 crore from Bhushan Steel’s bank loans, using 80 different firms.

“During the course of investigation, the team has found that the erstwhile promoters of BSL have used multitude of complex, fraudulent maneuvers to divert/siphon-off funds amounting to thousands of crores raised by the then management of BSL from Public Sector Banks using its several Associate Companies. This has led to wrongful losses to the banks and other investors in these companies”,  the ministry of corporate affairs had said in its statement.

Following the arrest, he was sent to judicial custody till August 14.

The arrest was made as part of the probe into the affairs of Bhushan Steel Limited (“BSL”) and its several Group Companies by SFIO.

On the basis of complaints received from various sources, the investigation was assigned by the Ministry of Corporate Affairs to SFIO

WeForNews 

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