The Enforcement Directorate on Friday arrested Sanjay Singal, the then chairman-cum-managing director of Bhushan Power & Steel Limited (BPSL), in a money laundering case.
The ED had recently attached properties worth over ₹ 4,025 crore in connection with the bank fraud case against BPSL and others.
The assets included land, building, plant and machinery of the company in Odisha, said the agency.
The ED investigation is based on an FIR registered by the Central Bureau of Investigation against the company, its then CMD, Mr. Singal, and others. As alleged, BPSL employed various modus operandi to siphon-off the loans received from several banks and financial institutions.
“An amount of ₹695.14 crore was introduced as capital by Mr. Singal and his family members,” the ED had said, adding that ₹ 3,330.09 crore was also found to have been routed out of the loan funds, using several shell companies," the agency had said.
The company had, between 2007-14, availed itself of loans to the tune of ₹47,000 crore from 33 financial institutions and banks and defaulted on repayments.
In April, the CBI had conducted searches on the premises of BPSL, its directors, promoters and their associates, in the criminal case alleging diversion of ₹2,348 crore.
According to the CBI, the funds were diverted through companies, shell firms and other related entities and the company deliberately defaulted in repayment and also claimed inadmissible CENVAT credit.
