CBI raid on Vadodara based Diamond Power Infrastructure Ltd for Bank Scam of Rs 2654 crores
In a CBI Raid, Books Gujarat Firm For Rs 2654 Crores Bank Fraud case. CBI today filed a criminal case against a Gujarat-based company dealing in electric cable and equipment and its directors for allegedly cheating various banks to the tune of Rs 2,654 crores.
Investigating agency made searches at the official and residential property of DPIL Diamond Power Infrastructure Ltd. and its directors in Vadodara in Gujarat, as per CBI.
Investigating agency further added that DPIL, manufactures electric cables and equipment, is promoted by SN Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar, who are executives of the firm. DPIL, through its management fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crores as on June 29, 2016, it said.
The loan, it said, was declared a non-performing asset in 2016-17.
Company and its directors used to get the term loans and credit facilities in spite of the fact that they were named in the RBI Reserve Bank of India’s defaulters list and ECGC (Export Credit Guarantee Corporation) Caution list at the time of the initial sanction of credit limits by the consortium, the agency alleged.
At the time of formation of consortium in 2008, Axis Bank firstly granted term loan and BOI Bank of India was the lead bank for cash credit limits.
With active connivance of officials from various banks, managed to get enhanced credit facilities.
Company produced false stock statements to the lead bank by treating receivables more than 180 days (non-current asset) as less than 180 days (current asset) to get more withdrawal power in their cash credit accounts. CBI alleged that DPIL extensively utilized cash credit limits for obtaining a large number of letters of credits, and many of them could not be honored by the company and were thus “forced charged” on the credit limit.
Bank of India’s exposure to the company is Rs 670.51 crore, Bank of Baroda’s exposure is Rs 348.99 crore and that of ICICI Bank is Rs 279.46 crore, the CBI FIR.