Punjab textile company chief arrested by CBI for Rs 1,500 cr bank fraud

Ludhiana: The CBI has arrested the director of Ludhiana-based SEL Textiles Neeraj Saluja in connection with a Rs 1530.99 crore fraud case in the Central Bank of India.

The yarn and fabrics manufacturing company has units at Malout and Nawanshahr in Punjab, Nemrana in Rajasthan, and Hansi in Haryana. Saluja will be produced before a special court in Mohali on Saturday. He was arrested on August 6, 2020. He was evasive in his replies to the CBI during the investigation.

A CBI spokesperson in an official statement said: "It was alleged that huge amounts of bank loans were diverted by the accused to its related parties and subsequently, adjustment entries were made. It was also alleged that the accused had shown procurement of machinery from non-reputed suppliers and thereby over-invoiced the bills."

The statement further noted that a huge amount of primary security against the credit limit such as stock and finished goods were allegedly disposed of by the director. It was done to misappropriate bank money as the sale proceeds of goods were not deposited with the bank.