NEERAJ SINGAL Vs. UNION OF INDIA AND ORS

JUDGEMENT

(1.) Crl.M.A.No.30267/2018

(2.) The background facts are that the Petitioner was arrested on 8th August 2018 pursuant to an investigation being carried out by the Serious Fraud Investigation Office ("SFIO") (Respondent No.2) into the affairs of Bhushan Steel Limited ("BSL") and Bhushan Steel and Power Limited ("BSPL"). This investigation was pursuant to an order dated 3rd May 2016 issued by the Ministry of Corporate Affairs ("MCA"), Government of India under Section 212 (1) (c) of the Companies Act, 2013 ("Companies Act") which directed investigation into not only the affairs of BSL and BSPL but thirteen other group companies, twelve of BSPL and one of BSL. The transactions which were asked to be investigated were for the period between Financial Years 2007-08 to 2014-15.

(3.) The broad allegations against the Petitioner, as stated by the SFIO in its application dated 9th August 2018 before the Special Judge (Companies Act), Dwarka Courts seeking his remand to judicial custody, are that he and his father Mr. B.B. Singal, the promoters of BSL, in connivance with its officials "used multitude of complex, fraudulent manoeuvres to divert/siphon off funds raised by BSL from banks using its more than 100 associate companies aimed at personal gain which led to wrongful loss to the banks and other investors in the companies." It is further alleged that "the fraudulent activities of B.B. Singal, Neeraj Singal and his associates have extended over a long period of time. The amount diverted through these fraudulent manoeuvres would be anywhere between Rs. 2000 to Rs. 3000 crore."