SC grants bail to ex-Bhushan Steel promoter Neeraj Singal in money laundering case

New Delhi, Sep 6 (PTI) The Supreme Court on Friday ordered the release of Bhushan Steel’s former promoter Neeraj Singal in a money laundering case arising from an alleged bank fraud of Rs 46,000 crore, saying due procedure was not followed by the Enforcement Directorate (ED) while arresting him.

A bench of Justices Sanjiv Khanna and Sanjay Kumar noted that Singal has been in jail for 16 months and the trial was not likely to be over soon.

As the hearing commenced, the bench observed,”A line has to be drawn somewhere in economic offences. You can’t shake up the economy, shake up confidence of the market and shareholders.

“But if trial is never going to get over, we have to match that aspect of liberty. It (alleged money laundering) is fraud on entire society,” the bench said.

Senior advocate Kapil Sibal, appearing for Singal, said his client cannot be forced to remain behind bars for such a long period before the trial.

“He has been inside for 16 months. Pankaj Bansal judgement (where court said ED has to compulsorily furnish the grounds of arrest to the accused) squarely applies. It cannot be punishment before trial,” Sibal said.

Additional Solicitor General S V Raju, appearing for the ED, opposed the bail application, saying a serious offence has been committed.

“We are concerned with non-grant of reasons (to the accused while making arrest). Sixteen months he has been inside. By this time…normally one would expect trial to be over within two to three years in these matters. It’s already been 16 months. I don’t think trial would have even started,” Justice Khanna observed.

Singal had appealed against the January 8 order of the Delhi High Court by which his bail plea and the petition challenging his arrest by the ED were dismissed.

The high court had said the Supreme Court’s decision, which mandated supply of the grounds of arrest in writing at the time of arrest, was passed after Singal had been apprehended in the case. The arrest, therefore, cannot be said to be illegal.

At the time of his arrest, an oral communication of the grounds of arrest was proper compliance of the provisions of Section 19(1) of the Prevention of Money Laundering Act (PMLA), the court had opined.

Singal, also an ex-Managing Director of Bhushan Steel, was arrested on June 9, 2023.

He contested the ED action against him, claiming he was not informed about the grounds of his arrest which, he insisted, was contrary to law.

The high court had said merely because each page of the document containing the grounds of arrest was not signed by the petitioner cannot be a reason to disbelieve the existence of the said document, or to negate the fact that the grounds of arrest were shown to the petitioner.

The ED had alleged before the high court that Singal was involved in one of the biggest banking frauds coupled with the offence of money laundering which caused a loss of more than Rs 46,000 crore of public money.

It alleged that Singal, with the connivance of other accused, knowingly engaged in “illegitimate acquisition” of loans in the name of Bhushan Steel Ltd & other group companies and indulged in laundering the proceeds of crime through a complex web of more than 150 companies.

While granting him bail, the apex court said Singal will make available one telephone number on which he can be contacted by officers of the ED to ascertain his whereabouts.

He was directed to surrender his passport and not leave the country without the court’s permission.

“In case there is any violation, it will be open to prosecution to seek recall of the order,” the bench said.