The Delhi High Court on Monday asked the Centre to respond to Bhushan Steel’s erstwhile promoter Neeraj Singhal’s plea against his arrest by the Serious Fraud Investigation Office (SFIO).
A bench of Justice S. Muralidhar and Justice Vinod Goel asked the government to file its response and listed the matter for August 21.
Singhal, a former Managing Director of Bhushan Steel Limited, was arrested on August 8. The SFIO alleged that he was involved in a serious corporate fraud punishable under the Companies Act, 2013.
A probe allegedly found that the erstwhile promoters of the company used a multitude of complex and fraudulent manoeuvres to divert thousands of crores raised from public sector banks using several associate companies.
After insolvency resolution, the ownership and control of BSL was transferred to the Tata Group.