Key Details of ED Order

Provisional Attachment Order No. 17/2026 dated July 08, 2026 issued by Deputy Director, Delhi Zonal Office-I, Directorate of Enforcement, New Delhi

Date of Receipt: July 08, 2026 at 07:06 P.M.

Authority: Directorate of Enforcement (ED), New Delhi

Legal Reference: ECIR/DLZO-I/02/2019 under Prevention of Money Laundering Act, 2002

Background Investigation

The ED investigation is based on:

  • FIR RC No. RCBD1/2019/E/0002 dated April 05, 2019 by CBI against Bhushan Power & Steel Limited (BPSL)
  • Chargesheet dated December 31, 2022 filed by CBI
  • Income Tax investigation findings
  • Directorate General of GST Intelligence (DGGI) investigation
  • Audited financial statements of BPSL (2011-12 to 2024-25) and Nova Iron and Steel Ltd (2011-12 to 2024-25)

Allegations Against BPSL

  • Loan default of ₹47,204 crores to consortium of 33 banks as of January 30, 2018
  • Fraudulent diversion of ₹2,348 crores to over 200 companies including 86 shell entities (2007-2014)
  • Fake CENVAT invoices and unauthorized credit availed of ₹41.02 crores (2011-2015)
  • Clandestine removal of finished goods worth ₹1,024 crores without documentation
  • Payments against bogus invoices totaling ₹410 crores

Connection to Nova Iron and Steel Ltd

Loan Transactions:

  • Unsecured loan agreement dated July 20, 2011 between BPSL and Nova Iron for ₹150 crores at 13% interest
  • Total disbursement of ₹153.57 crores from FY 2011-12 to 2015-16
  • Principal amount pending: ₹125.84 crores as per BPSL records
  • Closing balance in Nova Iron books: ₹151.59 crores as of March 31, 2019
  • Additional trade receivables/advances: ₹68.22 crores

Shareholding Pattern:

  • BPSL acquired shares in Nova Iron starting June-July 2011
  • BPSL shareholding reached 39.48% by 2012-2013
  • Shareholding diluted to 25.65% by 2017-2018 through transfers to related entities

Property Investments:

  • Immovable properties measuring 72.95 acres purchased in names of BPSL employees (Ravinder Kumar Rastogi and Sunil Gupta)
  • Total investment of ₹1.80 crores in property purchases
  • Properties shown as "Right of use assets" in Nova Iron balance sheets

Properties Attached

Immovable Properties: ₹6.57 crores

  • 72.95 acres of land in Bilaspur, Chhattisgarh
  • Registered in names of Ravinder Kumar Rastogi and Sunil Gupta
  • Fair market value as of April 05, 2019: ₹6,56,55,000

Movable Properties (Shares): ₹10.10 crores

  • 21.21% shareholding in Nova Iron and Steel Ltd
  • Held by three companies: Titanic Steel Industries Limited, Vintage Steel Private Limited, and Olympian Steel Industries Limited
  • 76,59,275 shares at ₹13.19 per share (BSE price as of July 08, 2026)

Total Attachment Value: ₹16.67 crores (₹6.57 crores + ₹10.10 crores)

Company's Response

Nova Iron and Steel Ltd states:

  • The Provisional Attachment Order does not have any material impact on its day-to-day operations
  • Company is examining the contents of the Order
  • Will take appropriate legal recourse based on legal advice
  • Evaluating implications of the Order

Previous Disclosure

Reference to earlier disclosure dated June 26, 2026 regarding receipt of Provisional Attachment Order from ED

Legal Status

This is a provisional attachment for 180 days under Section 5(1) of PMLA, 2002

The order will cease to have effect after 180 days or upon order of the Adjudicating Authority under Section 8(3) of PMLA, whichever is earlier

Financial Impact Assessment

Company view: No material impact on day-to-day operations

Financial impact not fully quantified in the disclosure