more-in The Delhi High Court on Monday sought the Centre’s response on a plea by erstwhile promoter of Bhushan Steel Neeraj Singal against his arrest by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off funds worth over ?20 billion. A High Court Bench of Justice S. Muralidhar and Justice Vinod Goel gave the direction on Mr. Singal’s plea, which sought bail apart from challenging the powers of arrest granted to the SFIO in August last year under the Companies Act. “What is the need for continued custody? Somebody’s personal liberty is involved. Tell us what the serious fraud is,” the Bench said, adding that use of adjectives like “serious fraud” will not suffice before the court. The court listed the matter for hearing on Tuesday after Additional Solicitor Generals Tushar Mehta and Maninder Acharya “vehemently opposed” grant of bail on the grounds that the investigation is at the initial stage and serious fraud has been allegedly committed by Mr. Singal, who was arrested on August 8. The court directed the SFIO, which comes under the Centre, to file a short affidavit and also bring relevant records by Tuesday. It also asked the Centre why it had allowed the Tatas to take over Bhushan Steel if there was criminality associated with the latter. “Did corporate criminality emerge after the take over by the Tatas? If criminality was already there, why did you permit the take over or sale,” the court asked the Centre. The court also asked, “What happens to criminal liability after a take over? Can it be transferred?” Mr. Singal was arrested in connection with an investigation being carried out by SFIO into the affairs of Bhushan Steel Ltd and Bhushan Steel and Power Ltd, pursuant to a May 2016 order of the Central government under the provisions of the Companies Act.

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