ED attaches Rs 58 crore assets in Bhushan Steel case

The Enforcement Directorate’s (ED) Delhi office has provisionally attached movable and immovable properties worth about Rs 58.34 crore in the name of Ritu Singal, who is the wife of Neeraj Singal, the former promoter and Managing Director (MD) of Bhushan Steel Ltd.

The attachment, ordered under the Prevention of Money Laundering (PMLA) Act, 2002, covers land and part of a residential property in Indore, Madhya Pradesh, as well as equity shares and bank balances. With this step, the total value of attached assets in the case has reached about Rs 481.72 crore.

This action is part of an ongoing investigation into an alleged bank fraud involving loans of Rs 46,000 to 56,000 crore given to Bhushan Steel by public sector banks, mainly State Bank of India and Punjab National Bank.

The ED alleges that the promoters diverted funds through fraudulent means, resulting in significant losses to the lenders. Investigations found that Neeraj Singal and his associates allegedly set up about 150 shell companies to move funds through complicated chains. The money was then used to inject artificial capital into Bhushan Steel, buy properties, and divert funds for personal use.

The ED has pointed to cases of forged documents and fake letters of credit that banks discounted, with the money then sent back to group companies or moved through family members and proxies. Ritu Singal’s name has come up before in the investigation. The ED claims that large sums, including money taken from Bhushan Steel, were sent to her through associates such as Archana Ajay Mittal and her husband, Ajay S Mittal, who were arrested in January 2024 for allegedly handling about Rs 80 crore in proceeds of crime. Properties held under false names or through dummy directors were also previously attached to prevent their concealment.

In March 2024, the ED attached assets worth about Rs 367 crore linked to Bhushan Steel and related companies in Delhi, Mumbai, Kolkata, and Odisha. Earlier, Rs 61crore was seized in 2021. The latest order focuses on assets held directly by Ritu Singal in Indore. Neeraj Singal was arrested by the ED in June 2023 and remained in custody until the Supreme Court granted him bail in September 2024, citing prolonged detention and trial delays. His mother, Uma Singal, and other family members have also been investigated.

Under the PMLA provisions, provisional attachments must be confirmed by an adjudicating authority and may result in confiscation upon conviction. The ED says these steps are intended to prevent accused individuals from benefiting from alleged crimes.

“The case began with complaints from the Serious Fraud Investigation Office (SFIO) and related CBI FIRs, and is still under investigation.

The total attachments of over Rs 481 crore underscore the magnitude of the alleged diversion of public funds and highlight the agency’s ongoing efforts to recover the money through legal means”, an ED official said.