SC overrules Delhi HC’s bail to Bhushan Steel ex-CFO in fraud case

The Supreme Court on Thursday set aside the August 14 order of the Delhi High Court which had granted bail to Bhushan Steel’s former chief financial officer and director Nittin Johari.

A Bench of Justice NV Ramana, Justice Mohan M Shantanagoudar, and Justice Ajay Rastogi by setting aside the order of the High Court canceled the bail granted to Johari.

The order came on an appeal filed by the SFIO which had challenged the Delhi High Court’s order of granting bail to Johari. Serious Fraud Investigation Office (SFIO) had arrested Johari for alleged fraudulent activities.

Earlier the apex court had stayed the High Court’s order. High Court had on August 14 given the relief to Johari, who was arrested by the country’s top fraud watchdog SFIO on May 2.

In its investigation, SFIO had found that Bhushan Steel had allegedly manipulated its accounts and entered into several fraudulent transactions by getting letters of credit worth Rs 20,000 crore from various banks by producing false documents, SFIO in its investigation had found.

Johari was in charge of raising funds from banks for the company and SFIO found his direct involvement in inflating the inventories of the company for availing enhanced working capital limits.

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