
The Enforcement Directorate (ED) has alleged that Brij Bhushan Singal and Neeraj Singal, former promoters of Bhushan Steel and Bhushan Energy, incorporated more than 150 companies for the purpose of siphoning funds from the two now-defunct companies. The ED claims that this action caused financial institutions losses of ₹11,446.73 crore, which is nothing but the proceeds of crime”.

According to the ED’s allegations, the siphoned-off funds were invested in preference shares of Bhushan Steel Ltd (BSL) in the name of the promoters or in the name of companies controlled by the promoters. Additionally, the funds were used to purchase properties in the name of these companies.
The investigation by the ED also revealed that employees of the group were made directors in the majority of the shell companies allegedly created for money laundering purposes.
Provisional Attachment of Assets and Allegations of Money Laundering
Earlier this month, the ED provisionally attached assets worth ₹367.83 crore in the Bhushan Steel case. These assets include movable properties valued at approximately ₹25 crore and immovable properties valued at around ₹342 crore. In 2021, the agency had already attached properties worth about ₹61 crore. In total, the ED has so far attached assets worth ₹429 crore.
The provisional attachment order by the ED alleges that Brij Bhushan Singal and Neeraj Singal, along with their employees and close associates, used a complex web of financial transactions to siphon off funds from Bhushan Steel Ltd and Bhushan Energy Ltd. The order further claims that some of the diverted funds were used for the acquisition of immovable and movable properties.
The ED’s investigation also found that Neeraj and Brij Bhushan Singal allegedly siphoned off ₹48.38 crore from Bhushan Steel Ltd and channeled it into their four foreign-based companies located in Dubai, Mauritius, Ethiopia, and Nigeria. The funds diverted from Bhushan Steel Ltd were also invested in various UTI/mutual funds in the name of members of the Singal family and their companies. After redeeming these funds, they were integrated into non-banking financial companies (NBFCs) controlled by Neeraj Singal.
Background Information on Bhushan Steel and Promoters
Bhushan Steel Ltd is a steel manufacturing company that was among the 12 large stressed assets referred to the National Company Law Tribunal for resolution by the Reserve Bank of India. The Serious Fraud Investigation Office (SFIO) had previously arrested Neeraj Singal, the former promoter and managing director of Bhushan Steel Ltd, for allegedly siphoning off over ₹2,000 crore from bank loans using more than 80 associate companies.
The SFIO investigation found that the erstwhile promoters of Bhushan Steel Ltd used fraudulent maneuvers to divert and siphon off funds raised from public sector banks through their associate companies. This resulted in wrongful losses to the banks and other investors.
Conclusion
In summary, the Enforcement Directorate has alleged that Brij Bhushan Singal and Neeraj Singal, former promoters of Bhushan Steel and Bhushan Energy, incorporated more than 150 companies for the purpose of siphoning funds from the two companies. The ED claims that this action caused significant losses to financial institutions. The investigation also revealed allegations of money laundering and the diversion of funds into foreign-based companies. The ED has provisionally attached assets worth ₹429 crore in connection with the case.