SFIO finds extreme misuse of corporate structure in Bhushan Steel case

The Serious Fraud Investigation Office (SFIO) Monday filed a 70,000-page complaint in the Bhushan Steel case wherein the probe agency has found "extreme misuse" of the corporate structure by the promoters which reduced corporate governance requirements to paper formalities, sources said.

Bhushan Steel had defaulted on loans and the banks had to take a haircut of more than Rs 20,000 crore as part of the resolution process.

The complaint has been filed at the special court, Dwarka, New Delhi.

Earlier, the agency had arrested company's former MD Neeraj Singal, who is now on interim bail.

The investigation has inter alia unearthed fraudulent misuse of letter of credits to the tune of around Rs 45,000 crore, gross misuse of the first-time adoption of Ind-AS in mis-stating the financial statements of the company, sources said.

There was fraudulent overvaluing of assets by around Rs 15,000 crore to inter alia write-off inventory worth around Rs 6,000 crore, trade receivables to the extent of