BSL ex-CFO Johri allowed to meet mother in hospital

Bhushan Steel Ltd (BSL)'s former CFO and whole-time Director Nittin Johri was allowed to meet his mother, who is ill and admitted in a hospital in the national capital, by the Delhi High Court on Friday. Justice Sunil Gaur granted permission to Johri to meet his terminally ill mother by visiting the hospital for a few hours in custody so that he can take a decision on whether she has to be put on a ventilator.

The court's direction came in view of the medical certificate of his mother.

The court was hearing Johri's plea seeking three weeks interim bail on account of his mother's terminal illness.

He was arrested by the Serious Fraud Investigation Office (SFIO) earlier this month in connection with the ongoing probe against the company.

The SFIO has opposed the interim bail plea of Johri. As CFO, he was previously managing the affairs of the BSL and looking after raising of funds from various banks and other financial institutions.

The investigation revealed that several fraudulent practices were carried out in BSL, including manipulations in the accounts during his term as the CFO and whole-time Director. He was one of the prime perpetrators of manipulations through the instrument of LCs (Letter of Credit) by filing false documents with various banks.

A large number of the LCs amounting to more than Rs 20,000 crore were opened using false documents on behalf of the BSL over a period of time starting from financial year 2014-15. By way of the said modus operandi, the BSL inter alia availed of working capital to avoid getting their loan or credit accounts declared as NPAs by the banks. The LCs worth more than Rs 3,000 crore finally devolved.

--IANS

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