ED raids S.E.L. Textiles in money laundering probe; assets attached

The Directorate of Enforcement (ED) recently conducted search operations at approximately 14 premises related to individuals and entities associated with M/s S.E.L. Textiles Limited under the provisions of the Prevention of Money Laundering Act, 2002. It is reported that actions were taken in Ludhiana and Nawanshahr in connection with the seizure of around 60 lakh rupees in cash, along with various incriminating documents and digital evidence. Notably, the ED is acting based on the FIR registered by the Central Bureau of Investigation (CBI), New Delhi, under various sections of the Indian Penal Code 1860 and the Prevention of Corruption Act, 1988.
The investigation pertains to allegations against M/s S.E.L. Textiles Limited and its directors, including the late Ram Saran Saluja, Neeraj Saluja, Dheeraj Saluja, and others, for causing wrongful loss to a consortium of 10 banks led by the Central Bank of India. The case involves the diversion of an unauthorized amount of 1531 crores from the approved loan for purposes other than those intended.
The ED’s investigation revealed that M/s S.E.L. Textiles Limited and its directors had fraudulently removed the loan amount received from the consortium of banks led by the Central Bank of India, violating the rules and conditions of the taken loan. The diverted funds were used inappropriately, including investments in their associate companies, purchase of assets and services without fulfilling contractual obligations, and payments for importing machinery through fraudulent means. Additionally, payments were made for personal use, purchasing residential flats, and making payments in exchange for machinery imports over ten years, despite not receiving export revenue.
Before this, during the investigation, provisional attachment of assets worth approximately 829 crores, including land, machinery, plant, and buildings at four locations in Punjab, Haryana, and Rajasthan, was carried out. According to information received from departmental officials, the ongoing investigation in this matter is still in progress.