ED gets five-day custody of SEL Textiles ex-director

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New Delhi, January 19

The Directorate of Enforcement (ED) has been granted five-day custody of Neeraj Saluja, former director of SEL Textiles Limited, who was arrested by the agency under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a Rs 1,530.99 crore bank fraud case.

Saluja was produced before a special court in Mohali on Friday and granted ED custody for five days.

The ED had initiated investigation on the basis of an FIR registered by the CBI under various sections of IPC, 1860, and the 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 the 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 investigations revealed that SEL Textiles Limited and its directors had fraudulently diverted the loan amount availed from consortium of banks using various modus operandi.

Earlier, during the course of investigation, 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 was confirmed by the adjudicating authority for the PMLA.