The Enforcement Directorate (ED) has attached a residential building in Mumbai’s posh Worli area in connection with a money laundering case lodged against Bhushan Power & Steel Ltd.
The building worth over Rs 190 crore, located at Ceejay House in Worli, has been attached under Prevention of Money Laundering Act (PMLA) as part of the ED’s investigation against Sanjay Singal, former chief managing director of Bhushan Power & Steel Limited in a case involving bank fraud.
The financial probe agency had initiated a money laundering investigation on the basis of FIR filed by the Central Bureau of Investigation in 2019 against Bhushan Power & Steel Limited and others on charges of criminal conspiracy amongst themselves and with unknown public servants of banks with intention to cheat banks, financial institutions and government exchequer.
The ED has alleged that the accused dishonestly and fraudulently diverted huge amount of bank funds through shell companies and deliberately defaulted repayment of bank loans.
“They did not use the bank funds for the purpose for which the same were sanctioned, committed forgery for the purpose of cheating, used forged documents and falsified the accounts causing wrongful loss to the lending banks, financial institutions, government exchequer and corresponding wrongful gain to themselves,” said the ED.
According to FIR lodged by CBI, Bhushan Power & Steel Ltd had availed various credit facilities from 33 different banks including financial institutions and the outstanding defaulted amount as on January 30, 2018 was Rs 47,204 crore.
The FIR also alleged that director of Bhushan Power & Steel Limited deliberately defaulted in repayment of loan amounts to lender banks, financial institutions as per the time schedule and their accounts remained continuously irregular.
Punjab National Bank declared accounts of Bhushan Power & Steel Limited as non-performing asset (NPA) on December 31, 2015.
“Money Laundering investigations has revealed that the funds were utilised for purchase of this property (attached building at Ceejay House) by Assurity Real Estate LLP were siphoned from Bhushan Power & Steel Limited and routed through shell companies projecting the same as unsecured loans. It has been established that the so called unsecured loans were without any documentation and repayment obligations,” added the ED.
The ED has also filed chargesheet against 25 accused and assets worth Rs 4,420.16 crore have been attached by the agency.