Corporate Watch

Former Bhushan Power & Steel CMD seeks interim bail

Former CMD Bhushan Power and Steel Ltd Sanjay Singhal is lodged under 14 days custodial interrogation at the hands of Enforcement Directorate (ED)

PSU Watch Bureau

New Delhi: Sanjay Singhal, former CMD Bhushan Power and Steel Ltd (BPSL) has moved an application in a Delhi court seeking interim bail on Tuesday. Singhal is currently lodged is Enforcement Directorate 14 days custody. Special judge Ila Rawat will hear Singhal's petition on December 5, the day his custodial enquiry ends. 59 year old Singhal is seeking bail on grounds of 'fragile health' and 'multiple ailments'.

Former Bhushan Power and Steel CMD is an accused in a multi-crore money laundering case linked to an alleged bank loan fraud. In the bail application Singhal claims to be suffering from coronary artery disease, spine lumbar, uncontrolled diabetes and severe hypertension.

"The applicant is entitled to seek preventive and ameliorative measures for his health and not be made to wait for an emergency situation which may be life-threatening while in custody," mentioned the bail application.

ED has attached BPSL assets worth Rs 4,025 Cr

So far in this case of multi-crore money laundering, the court has attached Bhushan Power and Steel Ltd's assets worth Rs 4,025 Crore. Last week seeking an extension of Singhal's custody the ED had told the court that "Rs 695.14 crore was introduced as the capital by Sanjay Singal (the then CMD of the company) and his family members in BPSL out of artificially generated long-term capital gains (LTCG) by a diversion of bank loans fund of BPSL".

ED custody ends December 5

Singhal's custody was extended for seven more days after ED pleaded that the agency needs Singhal's custody to trace the money trail for probable diversion of the proceeds of the money laundering swindling hundreds of crores.

The application will be heard on December 5.

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