Business India

CBI carries out searches at Electrosteel Castings offices

Electrosteel Steels on Monday said the Central Bureau of Investigation (CBI) has carried out search operations at corporate offices and other premises of its promoter company Electrosteel Castings (ESL) and residence of its Managing Director in a case of alleged irregularities in Jharkhand.

The search operations were carried out by the agency last Saturday relating to clearance given for diversion of forest land in Saranda forest in Jharkhand’s Singbhum district in alleged violation of Forest (Coversion Act), 1980 in 2012, the company said in a regulatory filing.

Meanwhile, the Kolkata bench of the National Company Law Tribunal (NCLT) in July had admitted State Bank of India’s petition against Electrosteel Steels for initiating insolvency proceedings, and appointed Dhaivat Anjaria, partner in PwC, as interim resolution professional.

The company, which owes lenders Rs 11,309 crore, was referred to the bankruptcy court under the Insolvency and Bankruptcy Code following a push from the Reserve Bank of India.

The steel maker in the filing informed that the CBI’s move was on the back of an FIR dated September 7.

In fact, the agency on Saturday had carried out searches at the premises of former Union Environment Minister Jayanthi Natarajan after registering an FIR against her in connection with clearance given during her term for diversion of forest land for mining in the alleged violation of laws.

The central agency has registered FIR against Natarajan, and Umang Kejriwal, the then Managing Director of Electrosteel Castings.

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