CBI Chargesheet filed against Statutory Auditor and Directors of a Company: Know Details

CBI Chargesheet filed against Statutory Auditor and Directors of a Company: Know Details The Central Bureau of Investigation (CBI) has filed a chargesheet on Tuesday against a Ludhiana-based private company, its three directors, statutory auditor, and two Punjab-based group concerns in a case of bank fraud totaling Rs. 1530.99 crore. The chargesheet was filed in Mohali court by the CBI against M/s SEL Textiles Ltd and its directors Neeraj Saluja, Dhiraj Saluja, and Navneet Gupta, CA. Ram Dass Khanna, Partner - Dass Khanna & Co. (Statutory Auditor of M/s SEL Textiles Ltd) and its group companies, Rhythm Textiles & Apparels Park Ltd. and Silverline Corporation Ltd. CBI has initiated the investigation on August 6, 2020, based on allegations of bank fraud. The accused, including a private company and its directors, were accused of defrauding a consortium of ten banks led by the Central Bank of India, resulting in fraud of approximately Rs. 1,530.99 crores. It was also alleged that the accused diverted large sums of bank loans to related parties and then made adjustment entries. The accused allegedly procured machinery from untrustworthy suppliers and overcharged the bills as a result. The accused allegedly disposed of a large amount of primary security against CC Limit, such as stock, finished goods, and so on, in order to misappropriate bank money as sale proceeds of goods sold and were not deposited with the bank. The company had units in Malout, Nawanshahr, Rajasthan, and Hansi, Haryana, and was in the business of manufacturing yarns, fabrics, and other items. On August 14, 2020, searches were conducted at the accused's residence, which resulted in the recovery of several documents, following which LOCs against the accused were opened. Several people were interviewed by the CBI during the investigation. One of the directors, Neeraj Saluja, was arrested after his answers were found to be evasive. He is being held in judicial custody.