The enforcement department has provisionally seized assets worth ??61.38 crore in its ongoing investigation against Bhushan Steel Limited (BSL), Bhushan Energy Limited (BEL) and others. The action was taken under the Prevention of Money Laundering Act 2002 (PMLA) in connection with the investigation into the siphoning of public funds against the accused, the agency said in a statement. Tuesday.
The assets attached by the ED consist of agricultural land in Raigad in Maharashtra, warehouses in entities under the control of former BSL promoters.
Read also: ED attaches ??190 cr building in Mumbai in Bhushan Power fraud case
The ED has opened a money laundering investigation based on a complaint filed by the Serious Frauds Investigation Office (SFIO) against Bhushan Steel Limited, Bhushan Energy Limited and others involving the siphoning of public funds. The SFIO had filed the complaint on August 16, 2019, under various provisions of the Companies Act 2013 and the Indian Penal Code of 1860.
During PMLA investigations, it was revealed that former BSL promoters Neeraj Singal, BB Singal and others had embezzled BSL funds. The siphoning of funds was carried out through an elaborate and complex network of transactions through channeling public funds in the form of unsecured loans made by Bhushan Energy Limited to their associated companies, ED said.
The proceeds of crime were eventually used to acquire various real estate assets. The elaborate and complex network of transactions has been structured to project these assets as intact, the agency added.
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