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CBI files charge sheet in Rs 2,654 crore Diamond Power scam

The CBI today filed its charge sheet against Vadodara-based Diamond Power Infrastructure Ltd. (DPIL), its directors and two former Bank of India officials among others in the Rs 2,654.40 banking fraud case, officials said.


PTI 13 Jul 2018, 01:00 PM India

The CBI today filed its charge sheet against Vadodara-based Diamond Power Infrastructure Ltd. (DPIL), its directors and two former Bank of India officials among others in the Rs 2,654.40 banking fraud case, officials said.

In its charge sheet filed before a special CBI court in Ahmedabad, the CBI has accused the company, its founder director Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm, two retired Bank of India officials V V Agnihotri and P K Shrivastava and two others of criminal conspiracy and cheating and under provisions of Prevention of Corruption Act, CBI spokesperson R K Gaur said.

"It is alleged that the 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 crore as of June 29, 2016," he said.

The loan, it said, was declared a non-performing asset in 2016-17.

"It is alleged that the 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 crore as of June 29, 2016," the agency had said after filing of FIR.

While agency had arrested Suresh Bhatnagar and his sons in April, the bank officials were arrested last week, he said.

While Agnihotri was posted as AGM, Shrivastava was posted as DGM in the Zonal office of Bank of India in Vadodara in 2007-08. Agnihotri had retired as GM and Shrivastava as DGM.

"Both had shown undue favour in the sanction of the working capital limits to a Vadodara-based private firm in 2008. It was also alleged that both these officials were responsible for the processing and recommending the working capital limits to the tune of Rs. 53.40 crore (approx.) in violation of the guidelines of the bank," the agency had said after the arrest of bank officials.

The company and its directors managed to get term loans and credit facilities despite being on the Reserve Bank of India's defaulters list and the Export Credit Guarantee Corporation's caution list at the time of the initial sanction of credit limits by the consortium, the CBI has alleged.

When the consortium was formed in 2008, the Axis Bank was the lead bank for the term loan and the Bank of India was the lead bank for cash credit limits

It is alleged that the firm, with active connivance of officials from various banks, managed to get enhanced credit facilities.

According to the CBI, the company had allegedly submitted 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 drawing power in their cash credit accounts.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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