ED Takes Significant Measures in Bhushan Steel Fraud Case, Apprehends Five Suspects

The Enforcement Directorate (ED) has initiated significant measures in the Bhushan Steel fraud case, leading to the arrest of five individuals by the investigating team. Sources within the investigating agency suggest that this case revolves around an alleged bank loan fraud amounting to approximately Rs 56,000 crore.

The main names of the accused arrested by the investigating agency are as follows –

1. Ajay Mittal
2. Archana Mittal (sister of Neeraj Singhal)
3. Nitin Johri (former CFO)
4. Prem Tiwari (Former Vice President)
5. Prem Aggarwal (Former Vice President)

56 thousand crore fraud

An alleged bank loan fraud of approximately Rs 56,000 crores is under investigation, with the initial charge sheet filed by the central investigating agency SFIO. The Enforcement Directorate (ED) has since taken over the case, shifting the focus to money laundering inquiries. MD Neeraj Singhal and several associates of the company are currently under investigation.

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In the preliminary stages of the probe, it was revealed that the company’s MD and associates had acquired loans from the bank through the formation of multiple shell companies. The funds were then circulated within these shell entities, eventually resulting in fabricated losses within the loan projects. This manipulation led to the bank loan becoming a target of fraud. Following the bank’s complaint, SFIO took charge of the case, subsequently passed on to the ED. Raids were conducted on October 13, 2023, in various locations, including Delhi and Haryana, in connection with the investigation.