Shivani Bhakoo
Ludhiana, November 1
The colossal rise of local business tycoon Neeraj Saluja is a story of how a man can beat the country's banking system using his connections to accumulate a huge amount of unaccounted money.
Money flowed in after 2003-04
It was after 2003-04 that the banks started sanctioning loans to the brothers. I cannot say what the brothers' source of influence was — whether political or someone in the bank — but I can definitely say that money flowed in easily afterwards. A Retired Banker
Neeraj Saluja, former director of SEL Textiles Limited, belonged to a family that ran a small business in Madhopuri here. The family stayed in an accommodation on the first floor of a house at Naulakha colony.
Saluja was arrested for a Rs 1,530.99-crore bank fraud on October 28 and was sent to five-day CBI remand.
The family had sent its first consignment of garments to Moscow in the early 1990s.
If the childhood friends of the Salujas are to be believed, the small garment trade of late RS Saluja flourished after his sons Neeraj and Dheeraj Saluja took over the family business.
"Dheeraj, the younger brother of Neeraj, went with a consignment to Russia and stayed back to establish the business. When things did not work out in Russia, Salujas found Dubai as the next destination to expand their business," a friend of Saluja said.
Neeraj became the managing director of SEL Manufacturing Company, which was established in 2006. He also became the director of Shiv Narayan Investment. He also retained the post of director of companies such as SEL Aviation Pvt Ltd (2008), Rhythm Textile and Apparel Park Ltd (2008), SEL Textiles Ltd (2009), Silver Line Corporation (2010), Young Presidents Organisation Punjab Chapter (2011), SEL Renewal Power (2013), Siddhivinayak Service Ltd.
These companies were floated on the basis of loans sanctioned by various banks all these years. There are allegations that a huge amount of money was diverted to Dubai by the Salujas. If sources are to be believed, the family also established a luxury taxi business in Dubai.
"The first company the Salujas took over was Mangla Cotex near Neelon. After that takeover, the group floated its own companies and continued taking over other firms. The family had expanded their business entirely on bank loans," said a retired banker, requesting anonymity.
An official with Allahabad Bank played an important role in sanctioning one of the earlier loans of around Rs 400 crore to the group, he added.
The political links of the Saluja family during the tenure of the SAD-BJP government in the state are no secret. "Certain top bigwigs of the Shiromani Akali Dal enjoyed a good rapport with both Saluja brothers. Lavish parties in Dubai were the talk of the town during those days," a top industrialist said.
It is also believed that the Salujas owned a private jet as well at one point of time.
It has been years since Dheeraj visited India.
Another friend said: "He did not come even to attend the wedding of his nephew (Neeraj's son). There are speculations that he had been looking after the business in Dubai to evade arrest. On his 50th birthday this year, a group of friends were invited to Dubai to celebrate the occasion, which lasted for almost three days. A WhatsApp group was formed for the birthday celebrations."
Things for the Salujas changed after the global recession in 2008.
Owing to the non-release of the sanctioned funds by banks during the expansion phase and various subsidies by the Central and state governments, the company faced difficulties in sourcing cotton.
The company also faced cash crunch when the banks refused to release the sanctioned loan amounts completely, due to which it became difficult for the running of the factories.
The company, along with the lenders, after having conducted various studies, jointly resolved to opt for a Corporate Debt Restructuring (CDR) in 2013-14. As part of the CDR, prior to its approval, the banks got a special investigation audit done for the accounts of the company in 2014.
The lenders, however, due to reasons best known to them, did not comply with the conditions of the resolution plan and did not release the funds as were mandated as per the agreement.
As a consequence, the company's own cash flow could not match the expenditure required for the expansion of the projects. The accounts of the company turned into a non-performing asset. Following this, the banks again conducted a forensic audit based on the special investigation audit.
The FIR in question was registered by the Central Bank of India in 2020.
from The Tribune https://ift.tt/Jj0VnzZ
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