New Delhi, August 10: The Serious Fraud Investigation Office (SFIO) has arrested Bhushan Steel’s erstwhile promoter Neeraj Singal for allegedly siphoning off funds worth over Rs 2,000 crore, according to officials.
This is the first time that the SFIO has arrested a person for fraudulent activities, said a senior official. Singal was arrested in the national capital and has been sent to judicial custody till August 14.
The probe agency, which comes under the Corporate Affairs Ministry, got powers to arrest people for violations of company law last year.
The Finance Ministry said Singal is “accused of siphoning off over Rs 2,000 crore from the loans availed by Bhushan Steel Limited using more than 80 companies”.
The companies were used for fraudulent rotation of funds through bogus loans and advances, and investments, among others, it said in a tweet. The ministry said fraudulent activities contributed to the company becoming insolvent.
“Bhushan Steel Ltd is one of the 12 big cases that had been referred for insolvency resolution by banks. Tata Group has taken over management of the company from the Singals. SFIO investigation is on-going,” it said.
Source Tribune India