The Serious Fraud Investigation Office on Thursday arrested former Bhushan Steel Promoter and Managing Director Neeraj Singal is accused of using 80 associate firms
to siphon off Rs 2,000 crore from loans the company had taken from banks. Singal has been sent to judicial custody till August 14, The Indian Express reported.

Bhushan Steel was among the 12 accounts the Reserve Bank of India had identified last year for insolvency proceedings. In May, Tata Steel acquired the firm and settled its dues worth Rs 35,200 crore.

“This arrest was made as part of the investigation into the affairs of Bhushan Steel Limited and its several Group Companies by the Serious Fraud Investigation Office,” a government press release said. “The investigation was assigned by the Ministry of Corporate Affairs to the office based on the complaints received from various sources.”

The government alleged that the company’s former promoters and directors have not been cooperating with the investigation. “Apart from failing to appear before the investigation team, the material facts were also concealed,” it added.