ED arrests ex-Bhushan Power & Steel CMD Sanjay Singal for bank loan fraud

The ED on Friday arrested former Bhushan Power and Steel Ltd CMD Sanjay Singal in connection with its probe in a multi-crore money laundering case linked to an alleged bank loan fraud, officials said.

They said Singal was placed under arrest, under the Prevention of Money Laundering Act (PMLA), after he was questioned in connection with the case.

He will be produced before a court here on Saturday for seeking further custody, the officials said.

He was arrested as he was not cooperating in the probe, they said.

The ED has recently attached assets worth Rs 4,025 crore of Bhushan Power and Steel Limited (BPSL).

"An amount of Rs 695.14 crore was introduced as capital by Sanjay Singal (the then CMD of the company) and his family members in BPSL out of artificially generated long-term capital gains (LTCG) by diversion of bank loans fund of BPSL," the ED had said.