Bhushan Power & Steel
Bhushan Power & Steel Limited (BPSL) is a steel company that is engaged in the manufacturing and marketing of steel products. It was established in 1970. In July 2019, BPSL was allegedly involved in fraud worth ₹3805.15 crore rupees (US$535.23 million), as detected by Punjab National Bank. It is one of India's most indebted companies and appears among the 12 companies referred by the Reserve Bank of India (RBI) to a bankruptcy court for the purpose of debt resolution.
Bhushan Power & Steel was founded in 1970, incorporated in 1999 and registered with the Registrar of Companies in Delhi. The company established its facility in Chandigarh in 1973 to manufacture Tor steel and wire rod. It has 7 manufacturing facilities in India. The company was promoted by Sanjay Singal.
The Enforcement Directorate (ED) had attached assets worth Rs 4,025 crore of BPSL in October 2019 regarding the ongoing probe. The National Company Law Appellate Tribunal (NCLAT) put a stay order, and the Ministry of Corporate Affairs stated in the proceedings that the ED did not have the jurisdiction to attach assets in an insolvency process. The ED is seeking a legal opinion to take the case before the Supreme Court against the order of NCLAT.
In April 2019, the Central Bureau of Investigation accused the company of taking a loan of ₹47,000 crore (US$6 billion) from various banks including Punjab National Bank (New Delhi and Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (Kolkata), which later turned into non-profitable assets. The case is under investigation by the Central Bureau of Investigation.
More banks followed suit in revealing financial misdealing. On July 6, 2019, Bhushan Power and Steel Limited was accused of committing another fraud of ₹3805.15 crore rupees (US$535.23 million) from Punjab National Bank. On July 13, 2019, Allahabad Bank disclosed that it had detected a fraud of ₹1,774.82 crore (US$236 million) by BPSL. On July 16, 2019, Punjab & Sind Bank (PSB) reported a ₹238 crore (US$32 million) fraud by BPSL.
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