Bhushan Steel ex-CMD’s bail plea in money laundering case rejected by Special court
[ By Kavita Krishnan ]Ex-Bhushan Steel Chief Managing Director Sanjay Singhal who is currently in judicial custody was rejected bail by a special court in relation to the multi-crore money laundering case. The Enforcement Directorate (ED) strongly opposed the bail application stating that Singhal had been evasive during the investigation and was giving “incorrect answers” during...
Ex-Bhushan Steel Chief Managing Director Sanjay Singhal who is currently in judicial custody was rejected bail by a special court in relation to the multi-crore money laundering case. The Enforcement Directorate (ED) strongly opposed the bail application stating that Singhal had been evasive during the investigation and was giving “incorrect answers” during the interrogation.
Special Judge Arun Bhardwaj dismissed the bail application.
Singhal’s counsel stated that there is no serious apprehension that Singhal will not be available to face the trial as he is no more the CMD of the company and therefore, would not commit an offence similar to the offence of which he is accused.
The CBI’s (Central Bureau of Investigation) FIR had alleged that Bhushan Steel, through its directors/staff, fraudulently diverted about Rs. 2,348 crore from the loan account of Punjab National Bank (Delhi and Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (Kolkata) into the accounts of various companies or shell companies without any obvious purpose and thereby misused the funds. It was also alleged by the CBI that Rs. 3300 crores invested as equity (share capital and premium) by promoter companies were found to have been routed out of the funds obtained as various loans and diverted from accounts of Bhushan Steel in the shape of advances shown to various shell companies by the different entry operators.
The Court however noted that Singhal alongwith the other accused removed certain electronic data which hampered the investigation.
Advocate Siddharth Luthra represented the accused while Nitesh Rana appeared for the ED.
Bhushan Steel had accumulated a debt of Rs. 47,000 crore and was part of the original dozen cases identified by the Reserve Bank of India to be referred to bankruptcy courts.
JSW Steel is looking to acquire Bhushan Steel. The former’s debt resolution plan was approved by the NCLAT earlier this year.