The Central Bureau of Investigation (CBI) on Friday arrested the Director of a Ludhiana-based private company in an ongoing investigation of a case related to an alleged bank fraud of Rs 1,530.99 crore.

The CBI had registered a case immediately in 2020 against SEL Textiles Ltd. and others, including its Director Saluja, unknown public servants and private persons on the allegations of bank fraud.

It has been alleged that the accused, which also includes a private corporation and its directors, defrauded a group of 10 banks, led by the Central Bank of India, resulting in fraud of around Rs 1530.99 crores.

It was also alleged that the accused had shown procurement of machineries from non-reputed suppliers and thereby over-invoiced the bills. Huge amount of primary security against cash credit limit i.e. stock, finished goods etc.

IT was allegedly disposed off by the accused to misappropriate bank money as sale proceeds of goods sold were not deposited with the bank,” the CBI official added.

Searches were earlier conducted at the premises of the accused which led to recovery of several incriminating documents. LOCs against the accused had been opened. During investigation, the CBI had examined several persons.

He further said Saluja has been accused of disposing of a sizable amount of primary security against the credit limit, including stock and finished items, in order to defraud money from the bank because the sale revenues of the goods were not deposited with the bank.

According to the spokesperson, the CBI interrogated several people as part of the probe and the SEL textiles director was found to be evasive in his responses.