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Last Updated : Aug 20, 2020 09:03 PM IST | Source: Moneycontrol.com

Bhushan Steel & Power’s management illegally removed goods worth Rs 700 crore during resolution proceedings: ED

According to the ED, the goods worth crores of rupees were removed “both prior and during the proceedings before National Company Law Tribunal (NCLT), with due involvement of Khandelwal, the former Managing Director of BPSL”.

Representative Image
Representative Image

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.

According to the ED, goods worth crores of rupees were removed “both prior and during proceedings before the National Company Law Tribunal (NCLT), with due involvement of Khandelwal, the former Managing Director of BPSL.”

While searching the premises of the ousted management of BPSL, the law enforcement agency found “incriminating documents indicating huge cash transactions by Khandelwal, digital records and seized jewellery worth Rs 86 lakh."

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.
First Published on Aug 20, 2020 09:02 pm
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