Key Points
The Enforcement Directorate (ED) has alleged that Brij Bhushan Singal and Neeraj Singal, former promoters of Bhushan Steel and Bhushan Energy, incorporated more than 150 companies for siphoning of funds from the two now-defunct companies...
The siphoned-off funds were invested in preference shares of Bhushan Steel Ltd (BSL) in the name of the promoters or in the name of the companies controlled by the promoters, ED alleged..
The agency's probe also found that group employees were made directors in the majority of the shell companies allegedly floated for money laundering, people aware of the matter said.. ED earlier this month provisionally attached assets to the tune of 367. 83 crore in the Bhushan Steel case..
In its provisional attachment order, the ED has alleged that Brij Bhushan Singal and Neeraj Singal "in connivance with their employees and close associates, through a set of pre-arranged scheme of actions had used their large number of group companies for undertaking a complex web of financial transactions and siphoned off funds from BSL and Bhushan Energy Ltd (BEL)"...
"In the process of money laundering, funds diverted from Bhushan Steel Ltd were invested in various UTI/mutual funds, etc, in the name of members of Singal family and their companies," the provisional attachment said.. "After redeeming the same, these funds were integrated in NBFCs viz, M/s Brightsun Merchant Private Limited, M/s Ujjwal Holding Private Limited, both of them are effectively under the control of Neeraj Singal, as directors in these companies are employees working under Neeraj Singal.".
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13, Jun, 23This was submitted by the agency while seeking custodial interrogation of former BSL managing director Neeraj Singal. He was arrested on Friday and was remanded in ED's custody by a Delhi court till June 20.Amid mounting debt and allegations of irregularities, BSL had gone into bankruptcy in 2017. Tata Steel acquired the company and the subsidiary out of bankruptcy and renamed it Tata Steel BSL. It has now been merged with Tata Steel.