ED arrests 5, including former executives and promoter’s kin in Bhushan Steel bank fraud case | India News – Times of India

NEW DELHI: The ED on Thursday arrested five persons in a money laundering case against Bhushan Steel promoter Neeraj Singal, including his sister Archana and her husband Ajay Mittal, for their role in siphoning off bank funds. Singal was arrested by ED on June 9 last year and is presently in judicial custody.
Bhushan Steel and its promoters are under investigation for laundering of bank loans of Rs 56,000 crore.The others arrested on Thursday include Nittin Johri, the then CFO of Bhushan Steel, Prem Tiwari, company’s then vice president, banking, and Prem Agarwal, the then vice-president, accounts.
Though a lot of money due to banks have been recovered after the insolvency process through which Bhushan Steel has been sold to Tata Steel, the money laundering case against its promoters and his associates continues under the PMLA.
The ED initiated its PMLA investigation on the basis of a chargesheet filed by Serious Fraud Investigation Office (SFIO) against Bhushan Steel Limited. “The probe revealed that Bhushan Steel and its managing director Neeraj Singal and his associates formed several shell companies. They rotated funds from one company to another through multiple transactions. The funds were circulated to infuse capital, buy property and for other personal purposes,” ED said.
The ED, which had earlier attached assets worth over Rs 61 crore on November 8, alleged Ajay Mittal and Archana Mittal, both knowingly received proceeds of crime to the extent of Rs 70 crore.
“They also mortgaged property of BSL and routed the funds to the family of Neeraj Singal. Nittin Johri, Prem Tewari and Prem Agarwal are ex-employees of BSL responsible for accounts and banking transactions,” the agency said, alleging that these people were also directors in various paper companies managed by Neeraj Singal.

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