New Delhi, The Enforcement Directorate on Friday filed a charge sheet in the money laundering case involving Bhushan Power and Steel Ltd CMD Sanjay Singal relating to an alleged bank loan fraud. The charge sheet, which names 24 persons and the company as an accused, termed Singal the “mastermind” behind the diversion of the loan amount.
Special Public Prosecutor (SPP) Nitesh Rana told Special CBI Judge Arun Bhardwaj that the directors of the BPSL deliberately defaulted in repayment of loan amount to the lender banks as per the time schedule and their accounts remained continuously irregular.
“The said proceeds of crime were laundered by way of infusion in the form of equity in BPSL, creation of assets in the name of self or his family members directly or indirectly,” he said.
Following the submissions, Special Judge Bhardwaj, while taking cognisance of the charge sheet, issued a production warrant against Singal and slated the matter for hearing on January 21.
The document, filed through advocate A.R. Aditya, stated: “BPSL, through its directors, availed various credit facilities from 33 banks/financial institutions between 2007 to 2014 and the outstanding defaulted amount as on January 30, 2018 was Rs 47,204 crore. BPSL availed various loan facilities from these banks under the leadership of PNB large corporate branch Chandigarh for different purposes, namely working capital, term loan for purchase of plant of machinery, non-fund based term loans etc.
“The company and its directors deliberately defaulted in repayment of loan amount to lender banks as per the time scheduled and their accounts remained continuously irregular. The IT authorities have conducted searches on the premises of BPSL in Chandigarh on December 21, 2014 and found illegal diversion of funds from the accounts of BPSL through various modus operandi,” the final report said.
Singal was arrested on November 22 last year under the Prevention of Money Laundering Act (PMLA) after he was questioned in connection with the case.
