CBI raids Bhushan Steels in Chandigarh and 4 other locations regarding Rs 2,348 cr fraud

CBI searches Bhushan Steel

The Hush Post| 11:30 am |two-minute-read|

Central Bureau of Investigation (CBI) carried out searches at several locations at the offices and residential premises of New Delhi-based Bhushan Power & Steel Limited regarding Rs 2,348 crore bank fraud case.

The searches were conducted in Chandigarh, Delhi-NCR, Kolkata and Odisha. The searches were conducted at the residential premises of the company’s directors, promoters and their associates. The agency has booked the firm, it’s directors, unidentified public servants and other private persons in the case.

The FIR lodged by CBI suggests that the accused used the bank funds for the purpose other than sanctioned by the bank by committing forgery, using forged documents and falsifying the accounts causing loss to the tune of Rs 2,348 crore to the lending banks, financial institutions and government exchequer.

“The accused dishonestly and fraudulently diverted huge amount of bank funds through companies/shell companies/entities etc and deliberately defaulted in repayment and also claimed inadmissible CENVAT [Central Value Added Tax] credit,” said an officer of the CBI as per a news report.

According to the investigation agency, Bhushan Power & Steel Limited misused the funds by fraudulently diverting Rs 2,348 crore (approx) from the loan account of Punjab National Bank (New Delhi and Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (Kolkata) into the accounts of various shell companies without any obvious purpose.

Bhushan Power & Steel Limited diverted the funds through its directors and staff.

“It was further alleged that the Bhushan Power & Steel Limited availed various loan facilities from 33 banks/financial institutions between 2007 and 2014 to the tune of Rs 47,204 crore (approx.) and defaulted on repayments. Subsequently, the lead bank PNB declared the account as non-performing asset followed by other banks and financial institutions,” said the CBI.

According to probe agency, the accused entered into a criminal conspiracy with unknown public servants of banks and others to carry out fraud on banks, financial institutions and the government exchequer.

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