Supreme Court Grants Bail To Neeraj Singal In Multi-Crore Money Laundering Case

On Friday, the Supreme Court has granted bail to Neeraj Singal, the former Managing Director of Bhushan Steel Ltd, previously detained by the Enforcement Directorate (ED) in connection with a high-profile money laundering case.

The case involves an alleged bank fraud amounting to a staggering Rs 46,000 crore.

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The bench, led by Justice Sanjiv Khanna and including Justice Sanjay Kumar, heard Singal’s special leave petition challenging the Delhi High Court’s dismissal of his bail request.

The High Court had upheld the legality of Singal’s arrest, which took place on 9 June 2023.

In its ruling, the Supreme Court acknowledged the prolonged pre-trial detention Singal has endured and the improbability of the trial concluding in the immediate future.

The court directed his release on bail and stipulated that the trial court would determine specific terms and conditions.

Additionally, Singal must surrender his passport and seek court permission before traveling abroad.

The Delhi High Court had previously rejected Singal’s plea, referencing the oral communication of arrest grounds at the time as compliant with legal standards.

The Court based its decision on the Supreme Court’s ruling in the Pankaj Bansal vs. Union of India case, which required written grounds for arrests only prospectively.

The ruling in the Ram Kishor Arora vs Union of India case clarified that non-compliance with this requirement before the Pankaj Bansal ruling would not be considered illegal.

The ED’s investigation, triggered by a complaint from the Serious Fraud Investigation Office (SFIO), uncovered that Bhushan Steel and Singal allegedly established shell companies to misappropriate funds, causing significant losses to the State Bank of India and Punjab National Bank.

The investigation revealed fraudulent activities, including document forgery and false representations to financial institutions, and misuse of fabricated Letters of Credit in favor of JSW Steel Limited and Hindustan Zinc Limited.

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