The Delhi High Court sought the response of an accused Today (April 2nd) on a plea moved by the Enforcement Directorate (ED) challenging the bail granted to her by a trial court in a bank fraud-linked money-laundering case exceeding Rs 46,000 crore, against the erstwhile Bhushan Steel Limited (BSL).
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: The Delhi High Court called for a response from Archana Ajay Mittal, in the face of a petition filed by the Enforcement Directorate (ED) that challenges the bail granted to her by a lower court. This legal maneuver is part of a broader investigation into a money laundering case tied to the alleged bank loan fraud exceeding Rs 46,000 crore involving Bhushan Steel Limited (BSL).
Justice Swarana Kanta Sharma, overseeing the matter, instructed Mittal-sister to BSL’s former promoter Neeraj Singal-to provide her response within a three-week timeframe, setting the stage for the next hearing on July 11.
The Enforcement Directorate’s challenge is rooted in their contention with the trial court’s decision on February 14, which saw Mittal being granted bail against a personal bond of Rs 10 lakh and a similar amount as surety. The ED argues that the trial court’s order contains several inaccuracies and has thus requested the high court to revoke Mittal’s bail.
The crux of the ED’s case against Mittal and her husband, Ajay Mittal, involves the accusation that they knowingly benefited from the proceeds of crime, specifically an amount of Rs 70 crore. It’s alleged that this sum was part of the funds obtained through bank loans by BSL, which, by March 31, 2017, had amassed a staggering liability of Rs 46,646.73 crore. The Mittals are accused of mortgaging a BSL property and diverting these funds for the benefit of the Singal family.
Both Ajay Mittal and Singal are currently under judicial custody, with Singal having been apprehended by the ED in June of the previous year. Following his arrest, a chargesheet was filed against him and others in August, highlighting various offenses under the Prevention of Money Laundering Act (PMLA).
Despite Archana Mittal’s defense that she held no official position-neither as a director, promoter-member, nor employee of BSL-the ED maintains that she played a pivotal role in facilitating the alleged money laundering activities. This case gains further complexity with the revelation that, following a corporate insolvency resolution process, Tata Steel Limited took over BSL in 2018.
The ED’s investigation has unearthed a network of shell companies allegedly used by Singal and his associates to circulate funds amongst themselves, creating a web of financial transactions designed to mislead and defraud banks.
This case has its roots in a chargesheet by the Serious Fraud Investigation Office (SFIO), shedding light on the alleged fabrication of documents and fraudulent activities aimed at siphoning bank funds for personal gain, thus encapsulating a vast scheme of financial malfeasance that now awaits judicial scrutiny.
Click Here to Read Previous Reports of Delhi High Court
Click Here to Read Previous Reports of SFIO–Serious Fraud Investigation Office
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
