The Enforcement Directorate said on August 20 that it unearthed the clandestine removal of goods worth Rs 700 crore while raiding the premises of debt-ridden Bhushan Power & Steel (BSPL)’s monitoring professional Mahender Kumar Khandelwal.
1. ED unearths clandestine removal of goods worth Rs.700 crores of M/s Bhushan Power & Steel Limited both prior and during proceedings before NCLT with due involvement of M.K. Khandelwal, Resolution Professional and former Director of BPSL in #bankfraudcase— ED (@dir_ed) August 20, 2020
2. During the search of the premises of Khandelwal and Director of BPSL incriminating documents indicating huge cash transactions by M.K. Khandelwal, Resolution Professional, digital records, jewellery worth Rs.86 lakh were seized in a #bankfraud case.— ED (@dir_ed) August 20, 2020
In 2017, India’s second-largest government-owned lender Punjab National Bank (PNB) had launched insolvency proceedings against BPSL under the Insolvency and Bankruptcy Code (IBC) 2016. PNB officials had reported a Rs 3,800 crore fraud and disclosed that 85 percent of its exposure to BSPL had been siphoned off. The bank had also claimed that Bhushan Power had misappropriated bank funds and manipulated their account books.
On July 26, 2017, the NCLT had admitted the insolvency petition and the debt-ridden firm’s resolution process was formally started.
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