By Bizodisha Bureau, Bhubaneswar, October 12, 2019: The Enforcement Directorate (ED) on Saturday attached Bhushan Power and Steel Limited’s (BPSL) properties that include land, buildings and machinery of its steel plant in Sambalpur district worth Rs 4,025 crore based on the order of the Prevention of Money Laundering Act (PMLA) court.

The attachment order came followed allegations by two banks – Punjab National Bank and Allahabad Bank, of fraudulently availing loans worth over Rs 5,500 crore by the ex-promoters and directors of BPSL.

The investigations under PMLA revealed that BPSL had used various modus operandi to siphon funds obtained as loans from various banks and financial institutions.

The property, however, has been attached for 180 days and it cannot be disposed of, transferred or dealt with in any manner until further order of the PMLA office.

BPSL is at present under insolvency proceedings, and JSW Steel has emerged as the successful bidder with a bid of Rs 19,500 crore against loan dues of Rs 48,000 crore.

The National Companies Law Tribunal (NCLT) has accepted JSW Steel’s resolution plan and refused to give immunity to JSW Steel from any criminal proceedings against the ex-promoters and directors of Bhushan Power and Steel if such proceedings lead to recovery of money siphoned off by these people.

The CBI had earlier booked BPSL, Sanjay Singal, the then chairman and managing director and others accused for defrauding banks.

An amount of Rs 695.14 crore was introduced as the capital by Sanjay Singal and his family members in BPSL out of artificially generated Long Term Capital Gains (LTCG) by a diversion of bank loans fund of BPSL.

“An amount of Rs 695.14 cr was introduced as the capital by Sanjay Singal & his family members in BPSL out of artificially generated Long Term Capital Gains (LTCG) by the diversion of bank loans fund of BPSL. LTCG was exempted from Income Tax during the relevant time, said the ED.