In connection with a bank loan fraud case, the Enforcement Directorate (ED) has provisionally attached assets worth 828 crore rupees of a Ludhiana based company ‘SEL Textiles Limited’. These assets consist of movable and immovable assets, such as land and buildings, plant and machinery, etc.
On the basis of the FIR that was registered by the CBI against ‘SEL Textiles Limited’ and its directors for cheating and misappropriation of bank loan amounts to the tune of 1,530 Crore rupees, the ED had begun an investigation under the provisions of PMLA.
The ED investigation revealed that ‘SEL Textiles Limited’ and its directors had fraudulently syphoned off the loan amount that was obtained from a consortium of banks, led by Central Bank of India, by using various means, such as,-
i) investments made in subsidiaries by doing in violation of the terms and conditions of the loan taken from different lendors;
ii) advance payments to related parties in the guise of procuring goods and services that never materialised;
iii) purchasing residential property for personal use;
iv) payments made through intermediaries for import of machineries for which imports are pending even after lapse of more than 10 years; and
v) non realization of export proceeds, etc.