ORDER

14.12.2023

FPA-PMLA-6807-6808/DLI/2023

This Appeal has been filed under Section 26 of the Prevention of Money Laundering Act, 2002 (in short “the Act of 2002”) to challenge the order dated 03rd November, 2023 passed by the Adjudicating Authority.

It is stated that an ECIR was recorded on 29th August, 2019 pursuant to a complaint dated 01^st July, 2019 filed by Serious Fraud Investigation Officer (SFIO) against M/s. Bhushan Steel Limited & Ors. It was for offence under I.P.C. and Companies Act of 2013. It was alleged that Brij Bhushan Singal and Neeraj Singal, ex-promoters of M/s. Bhusan Steel Ltd. had obtained huge loans from financial institutions with outstanding liabilities of Rs. 56,000 Crores.

Mr. Brij Bhushan Singal and Neeraj Singal, the ex-promoters of the Company had formed 157 companies in which either they were the directors or shown to be employee. In order to infuse funds in M/s. Bhusan Steel Ltd., they availed credit facility from lender banks. By using a complex web of companies and financial transaction, siphoned of the funds. It was alleged that an amount of Rs. 1,770 Crores was siphoned from M/s. Bhushan Steel Ltd and M/s. Bhushan Energy Ltd. by Brij Bhushan Singa