SC sets aside bail granted to Bhushan Steel's Ex CFO

The Supreme Court on Thursday set aside the Delhi High Court's August 14 order granting bail to Nittin Johari, ex CFO of Bhushan Steel for alleged fraudulent activities, including filing false documents with various banks.

A bench of Justices N V Ramana, Mohan M Shantanagoudar and Ajay Rastogi passed the judgement on a special leave petition filed by the Serious Fraud Investigation Office (SFIO).

Justice Shantanagoudar, who pronounced the order, said, "the impunged orde is set aside."

The top court had on August 16 stayed the order. Thus, Johari would remain in judicial custody.

He was arrested by the SFIO on May 2.

The high court had said the “mind and will of the company are the main accused, Brij Bhushan Singal and Neeraj Singal, who had been actually controlling the company.”

It had noted that accused Brij Bhushan Singal has not been arrested and co-accused Neeraj Singal has already been granted bail.

It had also pointed out that the high court’s division bench order granting bail to Neeraj Singal has been stayed by the Supreme Court but his release on bail has not been reversed by the top court.

It was alleged that Johari was managing the affairs of Bhushan Steel and was looking after raising of funds from banks and financial institutions. He was also one of the signatories to the financial statements of the company till fiscal year 2016-17.

In its appeal, the SFIO contended that the offence allegedly committed by Johari adversely impacted the economy of the country and it was a fit case for refusal of bail to the accused.

SFIO probe found that there were several alleged fraudulent practices at the company, including manipulations in the accounts and financial statements during the term of Johari. These included maintaining inflated inventories for availing enhanced working capital, it had said.

According to the SFIO, Johari was a member of the committee of board of directors on borrowing, investment and loans along with former promoters Brij Bhushan Singal and Neeraj Singal. He was a whole-time director of the company.