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Court allows Bhushan Steel's ex-CFO to visit ailing mother

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on Friday permitted Johri, Bhushan Steel's former who is in judicial custody since May 8, to visit his ailing mother in the hospital for few hours.

Johri, through Sudhir Nandrajog, had approached the court for interim bail on account of his mother's drastically deteriorating terminal illness.

Justice granted permission to Johri to meet his mother in the hospital while remaining in the custody.

Johri was arrested by SFIO (Serious Fraud Investigation Office) earlier this month.

According to the sources, Johri was managing the firm and looking after inter alia the affair of raising of funds from various banks and financial institutions.

He was one of the signatories to the financial statements of (BSL) till the fiscal 2016-17 and was also a member of the "Committee of Board of Directors on Borrowing, Investment and Loans" of BSL along with and

The SFIO probe alleged that there were fraudulent practices in the company, including manipulations in the accounts and financial statements when Johri was its These included maintaining inflated inventories for availing enhanced working capital.

Sources said Johri was one of the prime perpetrators of the fraudulent arrangement of manipulations through the instrument of Letters of Credit (LCs) by filing false documents with various banks.

A number of 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 the financial year 2014-15.

By way of the said modus operandi, sources said, BSL inter alia availed working capital to avoid getting their loan or credit accounts declared as NPAs by banks. LCs worth more than Rs. 3000 crore were finally devolved, sources mentioned.

CBI has accused Singhal and others of availing loans from 33 banks and financial institutions from 2007 to 2014 and defaulting on payments worth over Rs 2,000 crore. They have also been accused of fraudulently diverting a huge amount of through shell companies.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 18:45 IST