Supreme Court: Notice Issued To Punjab National Bank On Serious Fraud Investigation Office’s Pleas Alleging Fund Embezzlement In Bhushan Steel Ltd

The Supreme Court in the case Serious Fraud Investigation Office (SFIO) v. Rajesh Kumar Yaduvanshi & Anr, the bench comprising Chief Justice U.U. Lalit and Justice S. Ravindra Bhat and Justice Bela M. Trivedi observed and had issued a notice to Punjab National Bank (PNB) on a plea filled by Serious Fraud Investigation Office (SFIO) regarding the alleged siphoning of funds of Bhushan Steel Ltd.
In the present case, it has been submitted by SFIO before the court that the accused were complicit in embezzlement of funds and had moved the Supreme Court, wherein challenging the order of Delhi High Court’s quashing summons issued to Rajesh Kumar Yaduvanshi, the respondent in the case. The allegations made 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.
However, in the matter the respondent, Rajesh Kumar Yaduvanshi was PNB’s nominee for the Board of Directors of Bhushan Steel Ltd. Thus, the Trial Court in 2019 had summoned Yaduvanshi to appear in the case lodged against Bhushan Steel Ltd and others by the SFIO. The summons had been quashed by the Delhi High Court stating that Yaduvanshi was a nominee director of the company. Further, the High Court 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.
While issuing notice to PNB and two others, the Supreme Court bench in its order stated that since the concerned respondents appear on caveat through Mr. Pinaki Mishra, the learned Senior Counsel, instructed by Mr. Manikya Khanna, and Mr. R. Basant and the learned Senior Counsel, instructed by the learned counsel, Mr. Sanjay Kapur, service of notices upon the said respondents is dispensed with.
Accordingly, the bench listed the matter for final disposal before the appropriate Court on 06.12.2022.