Delhi High Court dismisses businessman Neeraj Singhal's bail plea as well as challenging arrest

New Delhi [India], January 9 : The Delhi High Court has dismissed the petition of businessman Neeraj Singhal seeking bail and challenging his arrest by the ED in a money laundering case.
The bench of Justice Vikas Mahajan passed the judgement on January 8, 2024 said, it cannot be said that the arrest of the petitioner is illegal. Under the circumstances, I am of the view that the petition challenging arrest as well as the bail petition deserve to be dismissed and are accordingly dismissed, said the judge.
Neeraj Singhal's bail plea stated that he is a businessman and was the ex-promoter, Vice Chairman and Managing Director of M/s Bhushan Steel Ltd. (BSL). However, under proceedings initiated under the Insolvency and Bankruptcy Code, 2016, BSL was acquired by Tata Steel in terms of the order dated May 15, 2018, passed by the National Company Law Tribunal.
Before BSL was taken over by Tata Steel, the Ministry of Corporate Affairs exercised its powers under Section 212(1)(c) of the Companies Act, 2013, an order dated May 3, 2016, ordering an investigation into the affairs of BSL by the Serious Fraud Investigation Officer ("SFIO"). The SFIO filed a complaint under various provisions of the Companies Act, 2013, including Section 447 and under Sections 409/467/468/471 and 120B of the Indian Penal Code, 1860.
The Directorate of Enforcement registered the subject ECIR under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), alleging that the petitioner is involved in one of the biggest banking frauds coupled with the offence of money laundering. It is alleged that the petitioner has caused a loss to the public to the tune of more than Rs. 46,000 crore.
According to the ED, the petitioner, in connivance with other accused person business entities, knowingly resorted to the illegitimate acquisition of loan funds in the name of BSL and other group companies and indulged in the laundering of proceeds of crime through a complex web of more than 150 companies having a common core, i.e., ownership and control of Neeraj Singal and Bharat Bhushan Singal.
According to the petitioner, he has cooperated with the investigation of the respondent since he has appeared before the Directorate of Enforcement about 14 times and has supplied documents that run into approximately 7,500 pages, comprising bank statements and balance sheets of all 148 companies for the period 2009-2017.
Later on, the petitioner received a summons dated June 3, 2023, from the respondent directing him to appear on June 9, 2023. On June 9, 2023, the petitioner failed to appear before the respondent due to his alleged illness and requested that his appearance be postponed to some other date or that he be allowed to appear. through video conferencing. On the said date, the petitioner also sent his authorised representative to appear before the respondent, stated the plea.