ED Tightens up on Bhushan Power and Steel, attaches assets worth Rs 4025 crore

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In a major action against Bhushan Power and Steel Limited (BPSL), the ED attached assets worth Rs 4025 crore. Enforcement Directorate (ED) officials said on Saturday that the action was taken during the investigation of money laundering related to the bank loan scam carried out by the company. This is the first action to attach property against Bhushan Steel in this case. However, ED officials have expressed the possibility of more properties being attached in the case.

According to the Central Investigation Agency, the action taken under the provisions of the Prevention of Money Laundering Act (PMLA) involves the attachment of Bhushan Steel, its buildings, plants and machinery in Odisha. The total value of the attached property is estimated to be around Rs 4025.23 crore.

A statement issued by the ED said that BPSL used various methods to scam the money taken from various banks as loans. Former CMD of the company Sanjay Singhal, while holding the post, rotated the funds received in the form of loans from banks in various ways, showing a huge amount of Rs 695.14 crore to himself and his relatives artificially as long term capital gains (LTCG). Please note that LTCG gets the benefit of tax exemption under the Income Tax rules.

The ED had registered a money laundering case against Bhushan Steel based on an FIR lodged by the CBI.

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