New Delhi-The country’s top fraud watchdog, SFIO, has arrested Bhushan Steel’s former chief financial officer and director Nittin Johri, according to a senior official. The late evening arrest occurred on Friday and Johri has been remanded to 2-day custody by the Patiala house court.
He has been arrested by the fraud watchdog in connection with ongoing investigations at the company. Johri was in charge of raising financing from banks for the company and reported directly to its promoters.
The fraud watchdog during its investigation found that Bhushan Steel had manipulated its accounts and entered into several fraudulent transactions by getting letters of credit from various banks worth Rs. 20,000 crore.
The steel maker filed for bankruptcy proceedings in 2017 and was subsequently acquired by Tata Steel.
The lenders overall exposure to the company was around Rs. 50,000 crore.
SFIO found Johri’s direct involvement in inflating the inventories of the company for availing enhanced working capital.
Source:-ET
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