New Delhi, May 4 (IANS): Bhushan Steel Ltd (BSL)'s former CFO and Whole-time Director Nittin Johri was on Friday evening remanded to two-day custody of Serious Fraud Investigation Office (SFIO).

According to official sources, Johri was remanded to the SFIO custody by the Metropolitan Magistrate here.

He was arrested by SFIO on Thursday in connection with the ongoing investigations against the company.

As CFO, he was previously managing the affairs of the BSL and looking after raising of funds from various banks and other financial institutions.

The investigation revealed that several fraudulent practices were carried out in BSL, including manipulations in the accounts during his term as the CFO and Whole-time Director, sources said.

"He was one of the prime perpetrator of the fraudulent arrangement of manipulations through the instrument of LCs (Letter of Credit) by filing false documents with various banks," said an official.

"A large number of LCs amounting to more than Rs 20,000 crore were opened using false documents on behalf of BSL over a period of time starting from FY 2014-15. By way of the said modus operandi, BSL inter alia availed of working capital to avoid getting their loan or credit accounts declared as NPA by the banks. LCs worth more than Rs 3,000 crore finally devolved."