In 2017 the RBI started bankruptcy proceedings against Bhushan Steel for taking loans worth INR 56,000 crore. Before this, from 2012 to 2015, it is seen that the company sent a humongous amount of money to the US regulatory agency, which controls and enforces the money related laws.
The transactions made were around $4.39 million, and this figure is extremely big according to the Suspicious Activity Reports because this amount of money sent to a law enforcement body for no reason is not normal at all. These transactions were made from a bank in Latvia, and two electronic companies from the UAE as well as a series of transactions were made from a Dubai based company.
All of these suspicious transactions gave a red signal to the foreign banks to the US financial crimes enforcement network. Bhushan Steel Ltd was India’s one of the biggest steel companies. They are accused of making multiple nested transactions.
From the Bank of New York Mellon, three transactions worth $454,822 from Meridian Trade Bank were informed, this was done on behalf of London based randview LPP and was made between 1024 to 2015. This money was transferred to the accounts of ICICI bank and Canara Bank accounts of Bhushan steel.
These suspicious money activities made them bankrupt and had a huge negative impact on their business as well. Neeraj Singal was arrested in 2018 for siphoning funds from Bhushan Steel, but currently, he is out on bail.