Former MD of Bhushan Steel arrested in 56000 crore bank fraud caseImage Credit source: File Photo
Neeraj Singhal, promoter and former managing director (MD) of bankrupt steel company Bhushan Steel has been arrested. The Enforcement Directorate is probing a bank scam worth Rs 56,000 crore. Neeraj Singhal has been arrested in this connection.
ED first raided Neeraj Singhal’s house and now he has been arrested. The special court has allowed Neeraj Singhal to be kept in ED custody till June 20.
These allegations are on former MD
According to the news of TOI, the ED’s investigation is based on the complaint lodged with the Serious Fraud Investigation Office against Bhushan Steel and its directors. Many allegations have been made against Neeraj Singhal in this complaint.
There are allegations against Neeraj Singhal like creating shell companies and manipulating the money of one company by showing multiple transactions. This money was used to buy property and for personal purposes.
The ED says that during the investigation it was found that the promoters/directors and officers of Bhushan Steel used forged documents to get the banks to issue letters of credit at a discount. He diverted this fund of the company into the web of his own companies.
(news being updated)