Supreme Court Issues Notice To Punjab National Bank On Serious Fraud Investigation Office's Pleas Alleging Fund Embezzlement In Bhushan Steel Ltd.

A Supreme Court bench comprising Chief Justice U.U. Lalit and Justices S. Ravindra Bhat and Bela M. Trivedi on Wednesday issued notice to Punjab National Bank (PNB) on petitions filed by the Serious Fraud Investigation Office (SFIO) regarding alleged siphoning of funds of Bhushan Steel Ltd.

The SFIO had submitted before the court that the accused were complicit in embezzlement of funds and had moved the Supreme Court challenging the Delhi High Court's order quashing summons issued to Rajesh Kumar Yaduvanshi, the respondent in the case. Briefly, the allegations were that the promoters of Bhushan Steel Ltd had fraudulently siphoned off funds from the corporation, while in connivance with their employees and a few other entities. 

The respondent in the matter, Rajesh Kumar Yaduvanshi was PNB's nominee for the Board of Directors of Bhushan Steel Ltd. In August 2019, the trial court had summoned Yaduvanshi to appear in the case lodged against Bhushan Steel Ltd and others by the SFIO. However, the Delhi High Court had quashed the summons stating that Yaduvanshi was a nominee director of the company. The High Court had further noted that there had been no allegation against Yaduvanshi stating that he had been involved in the affairs of BSL except in his capacity as a nominee director.

The Supreme Court bench, while issuing notice to PNB and two others stated in its order–

"Since the concerned respondents appear on caveat through Mr. Pinaki Mishra, learned Senior Counsel, instructed by Mr. Manikya Khanna, and Mr. R. Basant, learned Senior Counsel, instructed by Mr. Sanjay Kapur, learned counsel, service of notices upon the said respondents is dispensed with."

The matter is now listed for final disposal before the appropriate Court on 06.12.2022.

CASE TITLE: SERIOUS FRAUD INVESTIGATION OFFICE (SFIO) v. RAJESH KUMAR YADUVANSHI & ANR.

Click Here To Read Order