New Delhi [India], June 23 : The Delhi High Court on Friday issued notice to Enforcement Directorate (ED) on businessman Neeraj Singhal's plea challenging his arrest and remand granted to the agency in a money laundering case.
He is in the custody of ED till Saturday.
He is a former Promotor and Managing Director of Bhushan Steel. This case is for an alleged bank fraud of Rs 56,000 crore.
Justice Tara Vitasta Ganju issued notice to the ED and sought a reply within two weeks. The matter was listed on July 10 along with the connected matter before the roster bench.
Singhal had challenged his arrest in the money laundering case and his custody was granted to the ED.
Senior advocate, who appeared on Singhal's behalf, argued that the arrest of the petitioner is illegal as the ground of the arrest were not provided to him. Therefore, he argued that the custody granted to the agency is also illegal.
On the other hand, counsel for the ED argued that the petition is not maintainable. He argued that once the custody of the accused is granted to the investigation agency, the arrest can't be challenged.
The Rouse Avenue Court on June 20 extended the ED custody of Ex Promotor and MD Neeraj Singhal till June 24.
Singhal was produced before the court after the expiry of ten days of ED custody remand. He was arrested on June 9 by the Enforcement Directorate (ED).
Vacation judge Sunaina Sharma had extended the ED custody of Neeraj Singhal for next four days after hearing the submission of counsels for ED.
Special Counsel Zoheb Hossain along with Special Public Prosecutor (SPP) Naveen Kumar Matta appeared for the investigation agency.
While seeking an extension of remand, Counsel for ED submitted that some persons have been confronted with the accused during custody.
While seeking a further extension, the agency said that some more people have been summoned for further confrontation with the accused.
In the SFIO complaint, it was alleged that ex-promoters of M/S Bhushan Steel Limited namely Neeraj Singal and Brij Bhushan Singal had obtained huge loan from various banks and financial Institutions with outstanding liabilities of Rs 56,000 crores when the company went to insolvency and the IRP was appointed.
It is also alleged that the directors and the staff of the company M/S Bhushan Steel Limited had dishonestly and fraudulently by using false and fabricated documents diverted huge public funds to the tune of Rs 45,818 crores during the period 2013-2014 to 2016-2017 into its accounts, causing wrongful loss to the State Bank of India and Punjab National Bank.
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