The Enforcement Directorate (ED) has provisionally attached 12 immovable assets worth Rs 156.33 crore belonging to M/s Lakshmi Precision Screws Ltd, a Haryana-based company, in connection with a Rs 176.70 crore bank loan default case involving Canara Bank and State Bank of India.
The assets, located across Delhi, Mumbai, Gurugram, and Rohtak, include over 20 acres of commercial land, 4 acres of agricultural land in Rohtak and Gurugram, and four commercial flat-cum-office units in Mumbai and Delhi. The attachment was made under the Prevention of Money Laundering Act (PMLA), 2002.
The ED action follows FIRs filed by the Central Bureau of Investigation (CBI) against the company and its promoters—Lalit K Jain, Rakesh K Jain, Vijay Kumar Jain, and others—under IPC Sections 120B and 420 for criminal conspiracy and cheating. The company, incorporated in 1968 and later converted into a public limited firm, is one of India’s top manufacturers of high-tensile fasteners with its registered office in Rohtak.
According to ED findings, the company manipulated its financials to obtain inflated credit limits, misappropriated public funds, and diverted bank loans through fictitious transactions. It also submitted fake stock statements and replaced mortgaged properties without informing the lender banks.
The CBI, which filed a chargesheet in October 2024, uncovered that the firm used fake debtor claims to fraudulently increase its drawing power under a cash credit limit sanctioned in April 2013. A subsequent stock audit revealed a shortage worth Rs 214.95 crore. The investigation also found fraudulent letters of credit, bogus purchases, and unauthorised bank accounts used to divert over Rs 32 crore.
A forensic audit by Ernst & Young LLP exposed major lapses in the company’s financial records, raising concerns about its operational transparency.
Rajesh Jain, one of the accused named by both CBI and ED, told The Indian Express that he was a non-executive director and had already received a clean chit from the CBI. “We are fighting legal battles with NCLT and CBI, and will also contest the ED case in court,” he said.