[Bhusan Steel Bank Fraud Case] SC Seeks ED's Response Of Ex-Promoter Singal's Bail Plea Within Three Weeks

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A bench comprising Justices Manoj Misra and SVN Bhatti issued a notice to the Enforcement Directorate (ED), requesting a response within three weeks.

[Bhusan Steel Bank Fraud Case] SC Seeks ED's Response of Promoter Singal's Bail Plea Within Three weeks — [Bhusan Steel Bank Fraud Case] SC Seeks ED’s Response of Promoter Singal’s Bail Plea Within Three weeks

NEW DELHI: On Tuesday (25th June): The Supreme Court agreed to consider the bail plea of Neeraj Singal, the former promoter of Bhushan Steel, who is implicated in a money laundering case linked to an alleged Rs 46,000 crore bank fraud.

A bench comprising Justices Manoj Misra and SVN Bhatti issued a notice to the Enforcement Directorate (ED), requesting a response within three weeks.

Singal is appealing against a January 8 Delhi High Court decision that dismissed both his bail plea and his challenge to the legality of his arrest by the ED. The High Court had noted that the Supreme Court’s requirement for written grounds of arrest was established after Singal’s arrest, which occurred on June 9, 2023.

The court ruled that at the time of his arrest, orally communicating the grounds was in compliance with Section 19(1) of the Prevention of Money Laundering Act (PMLA).

Singal, who also served as Managing Director of Bhushan Steel, argued that he was not properly informed of the reasons for his arrest, which he claims was unlawful.

The High Court, however, stated that the lack of signatures on each page of the document detailing the grounds for arrest does not invalidate its existence or the fact that it was shown to Singal.

The ED has accused Singal of being involved in a significant banking fraud and money laundering operation, which allegedly resulted in a loss of over Rs 46,000 crore of public funds.

It claimed that Singal, along with other accused individuals, engaged in the “illegitimate acquisition” of loans in the name of Bhushan Steel Ltd and related companies, and laundered the proceeds through a network of more than 150 companies.