Rs.176 crore Loan Default in SBI and Canara Bank

The Enforcement Directorate (ED) has seized properties worth ₹156.33 crore belonging to M/s Lakshmi Precision Screws Private Limited. This action was taken on March 31, 2025, under the Prevention of Money Laundering Act (PMLA), 2002. The case is related to a loan default of ₹176.70 crore from Canara Bank and State Bank of India (SBI).

What Properties Have Been Seized?

The ED has taken control of 12 properties, which include:
✅ 7 commercial land plots covering over 20 acres
✅ A 4-acre agricultural land in Rohtak and Gurugram
✅ 4 commercial flats-cum-offices in Mumbai and Delhi

Why Did ED Take Action?

The ED started its investigation after the Central Bureau of Investigation (CBI) filed cases against the company and its promoters, including Lalit K Jain, Rajesh K Jain, and Vijay Kumar Jain. They were accused of cheating banks and committing fraud.

The investigation found that:

• The company hid important financial details from banks to get more loans.
• It sold off mortgaged properties without permission from the banks.
• The company misused loans and diverted money to related businesses.

What Happened in Court?

• The CBI has already filed a charge-sheet against the company and its directors.
• The National Company Law Tribunal (NCLT) has started the liquidation process of the company, meaning its assets will be sold to recover money.

What Did ED Find?

During its investigation, the ED found that M/s Lakshmi Precision Screws Ltd. had been involved in:
🔹 Submitting fake financial reports to banks to get bigger loans
🔹 Misusing loan money instead of using it for business
🔹 Swapping mortgaged land with other properties without informing banks

What Happens Next?

The case is still under investigation, and more action may be taken against the company and its promoters.