ED arrests 5 key accused in ₹56,000 crore bank loan case against erstwhile Bhushan Steel

The Enforcement Directorate (ED) has arrested five prime accused in a loan fraud amounting to approximately ₹56,000 crore linked to the money laundering case against erstwhile Bhushan Steel Ltd (BSL). The ED, working in collaboration with the Serious Fraud Investigation Office (SFIO), had initiated a thorough investigation into the allegations.

The five primary accused who have been taken into custody by the ED are Pankaj Kumar Tiwari, the former vice president banking of the company, former VP accounts Pankaj Kumar Agarwal, ex-chief financial officer Nitin Johri, Ajay Mittal, the brother-in-law of former promoter Neeraj Singal, and Ajay Mittal’s wife and sister of Neeraj Singal, Archana Mittal.

This case revolves around erstwhile Bhushan Steel Limited and several directors associated with the company, including promoters. Bhushan Steel was taken over by Tata Steel Ltd in 2018.

The arrested accused will be presented in the ED’s special court on January 12, and their remand will be sought from the court for further detailed questioning.

The ED has been conducting an in-depth investigation into the complex financial transactions and irregularities linked to the scam. The ₹56,000 crore bank fraud case initially came under scrutiny when the SFIO filed a Prosecution Complaint against Bhushan Steel Limited. Subsequently, the case was taken over by the ED for further investigation into potential money laundering aspects.

During the investigation, it was revealed that the managing director of the company, Neeraj Singal, and several of his associates had allegedly formed multiple shell companies. These companies were purportedly used to rotate funds obtained from the banks through loans. Subsequently, losses were claimed in projects where loans had been taken, leading to a significant financial discrepancy.

In the course of the investigation, several complaints were filed by banks, including the State Bank of India and Punjab National Bank. The ED conducted search operations across multiple locations, including Delhi, Haryana, Kolkata, Mumbai, and Bhubaneswar, among others, on October 13, 2023.

Assets related to the accused, including expensive cars worth around ₹4 crore and ₹72 lakh in cash have been seized.

Additionally, properties in Assam, Raigarh, and Faridabad, collectively valued at around ₹61.38 crore, have been provisionally attached by the ED.