Delhi court grants bail to ex-Bhushan steel CMD in money laundering case

A Delhi court on Friday granted bail to former Bhushan Power and Steel Ltd (BSPL) chairman and managing director Sanjay Singhal in connection with a multi-crore money laundering case pertaining to an alleged bank loan fraud.

Special CBI Judge Arun Bhardwaj, while granting bail, directed Singhal to furnish a bail bond of Rs 10 lakh and two sureties of the like amount.

The court had on Thursday reserved its order on bail of Sanjay Singhal after concluding arguments from both the sides.

Senior advocate Sidharth Luthra and advocate Vijay Aggarwal, who appeared on behalf of Singhal, had argued that his client had fully cooperated with the agency and has appeared before it whenever called.

On the other hand, public prosecutor Nitesh Rana representing the Enforcement Directorate (ED) had argued that Singal remained evasive and did not cooperate with the investigation.

The court had recently taken cognisance on a charge-sheet, which named 24 persons and the company as accused. The ED, in its first charge-sheet against Singal and others, said that Sanjay Singhal was the "mastermind" behind the diversion of loan funds.

According to the economic offences watchdog, the company and its directors had deliberately defaulted in repayment of the loan amount to lender banks as per the time scheduled and their accounts remained continuously irregular.

ED said that these proceeds of crime were laundered by infusion in the form of equity in BPSL, creation of assets in the name of self or his family members directly or indirectly.

Singhal was arrested by the ED on November 22 last year in connection with a money laundering case pertaining to an alleged bank loan fraud.

The ED has attached properties amounting to Rs 204 crores belonging to Singhal.

Recently, the agency also attached immovable properties worth Rs 4,025.23 crore of Bhushan Power and Steel Limited in the alleged bank fraud case under the Prevention of Money Laundering Act, 2002.