New Delhi, Oct 16 (IANS): The Enforcement Directorate (ED) on Monday said that it has carried out searches at 30 locations in Delhi-NCR, Haryana, Kolkata, Bhubaneswar and Mumbai in connection with its probe into the Rs 56,000-crore money laundering case involving the promoters of Bhushan Steel.
The financial agency said it seized evidence hidden with the close confidantes of then MD Neeraj Singal.
The ED said in a statement that during searches various incriminating documents or digital records were recovered and seized that were hidden with key employees or confidants of Neeraj Singal.
The agency also seized cash to the tune of Rs 72 lakh, foreign currency or travellers cheques worth Rs 52 lakh and three luxury cars including a Mercedes Benz, having an acquisition value of Rs 4 crore.
The ED said it carried out search and survey operations at the 30 locations on October 13 under the provisions of the Prevention of Money Laundering Act (PMLA).
The ED’s case is based on a charge sheet filed by the Serious Fraud Investigation Office (SFIO). The said complaint had invoked scheduled offences under the PMLA Act.
The ED said that during its probe it was found that erstwhile M/s Bhushan Steel Limited and its Managing Director Neeraj Singal and his associates formed several shell companies and they rotated funds from one company to another through a chain of multiple entities.
“The funds were circulated to infuse capital, buy property and for other personal purposes not intended by the banks,” the ED claimed.
It further said that during its probe it was found that promoters or directors and the officials of BSL prepared forged documents and made fraudulent representations before the banks to discount Letters of Credit and diverted the funds back into their own web of companies with malafide intentions causing wrongful loss to the State Bank of India and Punjab National Bank.
The ED had earlier attached the land situated at Village Karede Budruk in Maharashtra’s Raigad, Plot located at Haryana’s Faridabad and Plot located at Assam’s Kamrup valuing Rs 61.38 crore.
The attachment was confirmed by Ld. Adjudicating Authority. The ED has also arrested Singal, the then Managing Director of erstwhile BSL on June 6 this year, who is in judicial custody at present.