SFIO arrests former Bhushan Steel managing director

New Delhi (India), Aug 10 : The Serious Fraud Investigation Office (SFIO) on Thursday arrested former promoter and managing director of Bhushan Steel Limited (BSL), Neeraj Singhal.
Singhal was later sent to judicial custody till August 14 after being produced before the court of Competent Jurisdiction.
The arrest was made as part of the investigation, directed by the Ministry of Corporate Affairs, into the affairs of BSL and its several Group Companies by SFIO. The ministry assigned the investigation to SFIO, based on complaints received from various sources.
Singhal was arrested under Section 212(8) of the Companies Act, 2013, after it was found that he is guilty of indulging in serious corporate fraud punishable under Section 447 of the Companies Act, 2013.
During the investigation, it was uncovered that the erstwhile promoters of BSL have resorted to fraudulent maneuvers to siphon-off funds amount to Rs. 2000 crores from Public Sector Banks using several associate companies.
In May, the ownership and control over BSL was transferred to the Tata Group after the Insolvency Resolution.