Bhushan Steel promoters illegally avail Rs 46,000 crore fund flow: SFIO probe
The SFIO probe suggests that due to promoters siphoning off funds, the company's financial health deteriorated and the company went into insolvency with outstanding liabilities of Rs 56,000 crore
- Sep 13, 2019,
- Updated Sep 13, 2019 8:11 PM IST
An investigation by the Serious Fraud Investigation Office (SFIO), the government agency that probes white-collar crimes, had revealed that ex-promoters of Bhushan Steel - Brij Bhushan Singal and Neeraj Singal - have used illegal means to receive bank loans to the tune of Rs 45,800 crore between 2013/14 and 2016/17.
In the charge sheet filed by SFIO in the court, the government investigation agency has also accused both the ex-promoters along with other Bhushan Steel top executives including former CFO Nittin Johari of siphoning off funds from Bhushan Steel and Bhushan Energy for various purposes including purchase of movable and immovable properties.
The investigation reveals that funds were siphoned off through a web of 157 companies, which were directly or indirectly controlled by the Singals. Of the 157 companies, 62 of them were directly controlled by Brij Bhushan Singal and Neeraj Singal, while 85 others were operated through employees of Bhushan Steel and Bhushan Energy and eight others were run by entry operators on behalf of the Singals.
The SFIO probe suggests that due to promoters siphoning off funds, the company's financial health deteriorated and the company went into insolvency with outstanding liabilities of Rs 56,000 crore. The company was acquired by Tata Steel for a sum of Rs 47,500 crore under the Insolvency and Bankruptcy Code.
An investigation by the Serious Fraud Investigation Office (SFIO), the government agency that probes white-collar crimes, had revealed that ex-promoters of Bhushan Steel - Brij Bhushan Singal and Neeraj Singal - have used illegal means to receive bank loans to the tune of Rs 45,800 crore between 2013/14 and 2016/17.
In the charge sheet filed by SFIO in the court, the government investigation agency has also accused both the ex-promoters along with other Bhushan Steel top executives including former CFO Nittin Johari of siphoning off funds from Bhushan Steel and Bhushan Energy for various purposes including purchase of movable and immovable properties.
The investigation reveals that funds were siphoned off through a web of 157 companies, which were directly or indirectly controlled by the Singals. Of the 157 companies, 62 of them were directly controlled by Brij Bhushan Singal and Neeraj Singal, while 85 others were operated through employees of Bhushan Steel and Bhushan Energy and eight others were run by entry operators on behalf of the Singals.
The SFIO probe suggests that due to promoters siphoning off funds, the company's financial health deteriorated and the company went into insolvency with outstanding liabilities of Rs 56,000 crore. The company was acquired by Tata Steel for a sum of Rs 47,500 crore under the Insolvency and Bankruptcy Code.