Bank fraud: ED attaches properties worth Rs 828 crore of Ludhiana-based Sel Textiles

The central agency had initiated an investigation under the provisions of the Prevention of Money Laundering Act, 2002, based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in the year 2020 on a complaint filed by the Central Bank of India. The bank lodged a complaint against SEL Textiles and its directors for cheating and misappropriation of the loan amount to the tune of over ₹1,530 crore.

The investigation by the ED revealed that SEL Textiles and its directors had fraudulently diverted the loan amount availed from the consortium of banks, led by the Central Bank of India. They carried out the fraud through various modus operandi, such as investments made into step-down subsidiaries in violation of terms and conditions of loan availed; advance payments made to related parties in the guise of procuring goods and services which were never materialised; purchasing residential property for personal use; payments made in lieu of import of machinery through intermediaries for which import is pending even after lapse of more than 10 years; and non-realisation of export proceeds.

Further investigation is going on.

Earlier the CBI had filed a chargesheet in a Mohali court against the company following the arrest of one of the directors Neeraj Saluja.

ED sources said that the CBI had named in the chargesheet the name of the company owners – Neeraj Saluja and Dhiraj Saluja (both brothers), Navneet Gupta (director), Ram Dass Khanna, partner of Dass Khanna & Co. (statutory auditor of SEL Textiles) and SEL’s group concerns namely Rhythm Textiles & Apparels Park Limited and Silverline Corporation Limited.

There were allegations of cheating a consortium of 10 banks led by the Central Bank of India to the tune of Rs 1,530.99 crore, said the ED sources.