ED attaches textile firm’s properties worth Rs 800 cr

Tribune News Service

Ludhiana, February 17

The Directorate of Enforcement has provisionally attached properties worth Rs 828 crore of SEL Textiles Limited, a Ludhiana-based company, in connection with a bank fraud case. The properties attached include land & building and plant & machinery of the company situated at Alwar, Hisar, Sri Muktsar Sahib, Shaheed Bhagat Singh Nagar (Nawanshahr) and Ludhiana.

The Directorate had initiated an investigation under the provisions of the Prevention of Money Laundering Act, 2002 on the basis of an FIR registered by the Central Bureau of Investigation in the 2020, based on complaint filed by the Central Bank of India against the company and its directors for cheating and misappropriation of loan amount to the tune of Rs 1,530 crore.

Investigation revealed that the directors had fraudulently diverted the loan amount availed from a consortium of banks, led by the Central Bank of India, by investments made into subsidiaries in violation of terms & conditions of loan availed; advance payments made to related parties in guise of procuring goods and services which 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 in the case.

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