Serious Fraud Investigation Office (SFIO) arrests Mr. Neeraj Singhal in connection with investigation into the affairs of Bhushan Group of Companies
Mr. Neeraj Singhal, erstwhile Promoter and Managing Director of Bhushan Steel Limited was arrested by the Serious Fraud Investigation Office (SFIO). He was produced before the court of Competent Jurisdiction today and was sent to Judicial Custody till 14th August, 2018.
This arrest was made as part of the investigation into the affairs of Bhushan Steel Limited (“BSL”) and its several Group Companies by SFIO. The investigation was assigned by the Ministry of Corporate Affairs to SFIO based on the complaints received from various sources.
The arrest has been made by in exercise of the powers under Section 212(8) of the Companies Act, 2013, based on the material in its possession which has revealed that Mr. Neeraj Singhal is guilty of indulging in serious corporate fraud punishable under Section 447 of the Companies Act, 2013.
During the course of investigation, the team has found that the erstwhile promoters of BSL have used multitude of complex, fraudulent maneuvers to divert/siphon-off funds amounting to thousands of crores raised by the then management of BSL from Public Sector Banks using its several Associate Companies. This has led to wrongful losses to the banks and other investors in these companies.
The erstwhile Promoters/ Directors of BSL, have not been cooperating during the investigation till now. Apart from failing to appear before the investigation team, the material facts were also concealed.
After Insolvency Resolution, the ownership and control over BSL has been transferred to the Tata Group.
The investigation is under progress.
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