New Delhi [India], June 20 : The Rouse Avenue Court on Tuesday extended the Enforcement Directorate's custody of Ex-Promoter and MD Neeraj Singhal for the next four days in a money laundering case related to the Bhushan Steel case. This case is based upon SFIO alleging a bank fraud of Rs. 56,000 crores.
Singhal was produced before the court after the expiry of 10 days of ED custody remand. He was arrested on June 9 by the Enforcement Directorate (ED).
Vacation judge Sunena Sharma Sharma extended the ED custody of Neeraj Singhal for the next for days after hearing the submission of counsels for ED.
The court remanded the accused in further custody of ED till June 24.
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 further extension the agency said that Some more people have been summoned for further confrontation with the accused.
There are loan frauds, several ways in which money was siphoned off, and ED submitted.
Further, it was submitted that despite incessant efforts made by ED to optimize the ED custody of the accused Neeraj Singal, there is much more exercise yet to be done for unraveling and unearthing the modus-operandi used by the accused persons in siphoning off the huge public funds.
The counsel for the accused opposed the extension of remand saying that there is no new ground seeking further remand.
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 loans 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. Thereby causing wrongful loss to the State Bank of India and Punjab National Bank.
As per the ECIR registered by the ED, many subsidiary companies were formed by accused Neeraj Singal in which the bank funds were diverted in the guise of infusion of capital investment and the said companies were managed and controlled by accused Neeraj Singal.
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