ED: Bhushan Steel cleared goods without invoices amid NCLT proceedings

“In an ongoing investigation under PMLA involving siphoning and diversion of loan funds by Bhushan Power & Steel Limited (BPSL), it was gathered that BPSL had engaged in clandestine clearances of finished goods from its Odisha Plant to its plants at Kolkata and Chandigarh,” an ED statement said.

According to the agency, goods valued at Rs 700 crore had been cleared without payment of applicable taxes and duties and without issuance of any statutory invoice. “It was also gathered that this practice which was resorted to by the erstwhile management of the company had continued even after initiation of CIRP and some irregularities on part of Resolution Professional MK Khandelwal were also revealed,” the ED said. It also claimed that huge cash payments to various individuals outside the books of accounts indicate siphoning and generation of cash from various concerns undergoing process of CIRP under NCLT.