New Delhi [India], January 19 : The Directorate of Enforcement (ED) has arrested Neeraj Saluja, the Director of SEL Textiles Limited, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with an alleged bank fraud case of Rs 1,530.99 crore.
Neeraj Saluja was produced before the Special Court, Mohali on Friday. The ED in a release said the Court has granted ED custody for five days.
The ED initiated an investigation based on an FIR registered by CBI, New Delhi under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 against SEL Textiles Limited, Late Ram Saran Saluja, Neeraj Saluja, Dhiraj Saluja and others for causing wrongful loss to a consortium of 10 banks, led by Central Bank of India, to the tune of Rs 1,530.99 crore by illegally diverting the loan amount for the purposes other than it was sanctioned.
The ED investigation revealed that SEL Textiles Limited and its directors had fraudulently diverted the loan amount availed from consortium of banks, led by the Central Bank of India, by using various modus operandi viz. investments made into subsidiaries in violation of terms and conditions of loan availed; advance payments made to own firm in guise of procuring goods and services which never materialized; purchasing a residential flat in Mumbai for personal use; advance payments made for import of machinery which were never delivered in India and non-realization of export proceeds.
Earlier, during the investigation in this matter, a provisional attachment of assets valued at Rs 829 crore approximately including land and machinery as well as plant and building located at four locations in Punjab, Haryana and Rajasthan was undertaken which has been confirmed by the Adjudicating Authority for PMLA.
The ED also conducted searches on January 12 at 14 different locations related to Neeraj Saluja and other associated person/entity where cash amounting to Rs 60 lakhs along with incriminating evidence were seized.
ED said that further investigation is under progress.
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