SC notice to SFIO on bail plea by ex-CFO of Bhushan Steel

The Supreme Court on Tuesday issued notice to the Union government's Serious Fraud Investigation Office on a bail plea moved by Nittin Johari, former Chief Finance Officer of Bhushan Steel.

A bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and B R Gavai sought a response from the SFIO, corporate fraud investigation agency, on a special leave petition filed by him. The court put the matter for consideration after two weeks.

The petitioner, led by senior advocates Mukul Rohatgi and Sidharth Luthra, challenged the validity of the Delhi High Court's order of January 27, 2020, refusing him bail. The counsel said all other accused in the matter were already on bail.

Johari was arrested on May 2, 2019 for alleged fraudulent activities, including the filing of false documents in banks.

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

The SFIO contended that the offence allegedly committed by Johari adversely impacted the economy of the country.

It 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.

The SFIO claimed Johari was a member of the committee of the 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.