ED Attaches Rs. 156.33 Crore Worth Assets of Lakshmi Precision Screws Pvt. Ltd. in Loan Default Case(Judicial Quest News Network)
Gurugram,2, April,2025. The Directorate of Enforcement (ED), Gurugram Zonal Office, has provisionally attached 12 immovable assets worth Rs. 156.33 Crore linked to M/s Lakshmi Precision Screws Private Limited under the Prevention of Money Laundering Act (PMLA), 2002. The assets, attached on March 31, 2025, relate to a loan default of Rs. 176.70 Crore owed to Canara Bank and the State Bank of India (SBI).
The attached properties include 7 commercial land parcels spanning over 20 acres, a 4-acre agricultural land located in Rohtak and Gurugram, as well as 4 commercial flat-cum-office units situated in Mumbai and Delhi. These properties were seized as part of ED’s ongoing investigation into the company’s financial dealings.
ED initiated its investigation following the registration of FIRs by the Central Bureau of Investigation (CBI) against M/s Lakshmi Precision Screws Pvt. Ltd. and its promoters—Lalit K Jain, Rajesh K Jain, Vijay Kumar Jain, and others. The allegations against the company and its promoters include cheating and forgery under Sections 120B and 420 of the Indian Penal Code (IPC), 1860. The charges involve defrauding a consortium of banks by misrepresentation and concealment of material facts, disposing of mortgaged properties without the consent of the lenders, and engaging in dishonest dealings with related companies, leading to a financial loss of Rs. 176.70 Crore to the banks.
The CBI has already filed a charge-sheet in the case. In addition, the corporate resolution process for M/s Lakshmi Precision Screws Pvt. Ltd. remains unresolved, with the Hon’ble National Company Law Tribunal (NCLT) directing the initiation of liquidation proceedings for the corporate debtor.
During the ED’s investigation, it was uncovered that M/s Lakshmi Precision Screws Ltd. had engaged in fraudulent practices by submitting false and fabricated stock statements to banks. The company had also diverted funds under the guise of trading, using Letter of Credit (LC) facilities. The investigation revealed that the company and its directors misrepresented the financial status of the business to secure higher credit limits, ultimately defrauding the banks and misappropriating public funds.
Additionally, it was found that some mortgaged land was swapped with properties held by other individuals, without obtaining the necessary No-Objection Certificate (NOC) from the lending banks. Further investigations are still ongoing to uncover the full extent of the financial misconduct.
The ED’s action highlights its continued efforts to combat financial crimes and recover illicitly gained assets under the provisions of the Prevention of Money Laundering Act.
