New Delhi: The Enforcement Directorate has claimed that Bhushan Power and Steel Ltd's (BPSL) former Chairman and Managing Director Sanjay Singal siphoned off an amount of Rs 4,025.23 crore fraudulently.

"Sanjay Singal siphoned off an amount of Rs 4,025.23 crore by way of criminal activity related to a scheduled offence and has acquired, used and projected the proceeds of crime as untainted, thereby, committed an offence of money laundering as defined under Section 3 of PMLA, 2002," the ED said in its remand application moved before Special CBI Judge Illa Rawat.

During the investigation, it has been found that he has diverted a huge amount of funds from the total loan amount of Rs 47,204 crore, the ED said.

The investigation also revealed that the scale of diversion of this bank loan fund is much larger and that the diverted funds have been siphoned off to other entities.

Singal, in his statements, has admitted the modus employed by him for routing the amounts transferred by BPSL to various parties on account of purchase of goods, where no actual movement of goods took place, and as capital advances, the document said.

Earlier in the day, Singal, who was arrested by the ED on Friday, was sent to 7 days ED custody in connection with the money laundering probe against him.

"Singal was arrested under the charges of Prevention of Money Laundering Act," an ED official told IANS, adding that he had not been cooperating with the ED during questioning.

The ED recently attached assets worth Rs 4,025 crore of BPSL as part of its probe.