The Enforcement Directorate (ED) has claimed that Bhusan Steel defrauded 33 banks and financial institutions in past 7 years. The ED claimed this in its charge sheet that was filed against Bhusan Power and Steel (BPSL) in connection with money laundering. In its charge sheet, the ED has named Sanjay Singal, the then chairman-cum-managing director of Bhusan Steel as the main conspirator behind the fraud. Along with Singal, 23 others have been charged for providing accommodation entries facilitating the process of money laundering. The loan taken from the bank were not used for the purpose they were sanctioned. Similarly, the company has used forged documents for taking loan. The ED claims that they have found evidence of Rs.204.31 crore in the form of immovable properties belonging to the company under the control of Sanjay Singal. The ED had initiated its investigation under PMLA on the basis of FIR filed by CBI on April 5 2019 against Bhusan Steel and others for criminal conspiracy with unknown public servants of banks and other financial institutions. According to my view the chairman should have utilized the money for the it has been sanctioned. This type of unethical issues are seen much more nowadays, government should make strict rules against it. Similarly the banks as well as other financial institutions should cross check the documents before sanctioning loan.
Reference:https://www.indiatoday.in/business/story/bhushan-steel-defrauded-33-banks-financial-institutions-in-7-years-says-ed-in-chargesheet-1638049-2020-01-18
Great job congrats are very good with explanation 👍
ReplyDeleteThank you
DeleteNice job ❤️👍
ReplyDeleteThank You
DeleteGreat effort keep it up
ReplyDeleteGood brithbr keep it up
ReplyDeleteI agree with the statement that the government must take corrective actions against such fraudulent activities.
ReplyDeleteWell written and gives meaningful insights.
Thank You dai
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ReplyDeleteAs it is a Blog so try to write your own content rather than just putting the news into it
ReplyDeleteOtherwise good effort
What is meant by money laundering?
ReplyDeleteMoney laundering means concealment of the origins of illegally obtained money.
DeleteIt's quite bit known for us to know those things which u have mentioned above,keet posting like that ....
ReplyDeleteWhat is the purpose of Ed?
ReplyDeleteIt is an economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India
DeleteWhat action can be taken against them?
ReplyDeleteThey should be punished and government should impose high penalty on them.
DeleteWhat is PMLA?
ReplyDeletePrevention of Money Laundering Act is an Act of the Parliament of India enacted to prevent money-laundering and to provide for confiscation of property derived from money-laundering.
DeleteWhat is the term money laundering
ReplyDeleteMoney laundering means concealment of the origins of illegally obtained money.
DeleteWhat can be done to prevent this type of fraud?
ReplyDeleteTo prevent this type of fraud government can launch anti money laundering scheme, people can be educated and so on
DeleteHow financial institutions can be saved from this type of frauds?
ReplyDeleteWell, the financial institutions can cross check the documents and check whether the customers are providing fake or real documents before sanctioning loan.
DeleteGreat work with a very nice explanation
ReplyDeleteThank you
DeleteHow bank can be saved from money laundering?
ReplyDeleteThere should be proper record from where people are earning money and where they are investing, and by implementing money laundering act in this way banks can be saved from money laundering.
DeleteIs there any benefit of money laundrying for common man?? Does it effect the governement?? If yes then please let us know
ReplyDeleteNo, there is no any benefit of money laundering for common man. Similarly, it badly effect the government because it dismisses government tax revenue and indirectly harms to the honest tax payers.
DeleteBank should to investigate to the company after providing loan wether the company has invested that mony for proper purpose or not..
ReplyDeleteReply
Yes, the bank can do that.
DeleteInstead of many laws in money laundering, why government is failed to stop money laundering?
ReplyDeleteGovernment has not strong system to regulate the money laundering act and the other thing is corrupted system, politician and government.
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