The Central Bureau of Investigation has registered a cheating case against Vadodara-based Diamond Power Infrastructure Limited (DPIL) and its directors for allegedly cheating 11 banks to the tune of £265.4 million. The loan was declared a non-performing asset in 2016-17. The agency is conducting searches on the premises of the company and its functionaries.
The CBI has alleged that DPIL, promoted by S.N. Bhatnagar and his sons Amit and Sumit Bhatnagar, indulged in the alleged cheating. The company is into manufacturing of cables and other electrical equipment. “It is alleged that DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 Banks since 2008, leaving behind an outstanding debit of £265.44 million as on June 29, 2016,” said an official.
The company and its directors managed to get the term loans and credit facilities, in spite of the fact that they were already appearing in the RBI’s defaulters list and ECGC Caution List at the time of initial sanction of credit limits by the consortium, it is alleged. At the time of formation of consortium in 2008, Axis Bank was the lead bank for the term loan and Bank of India was the lead bank for cash credit limits.
It is alleged that the company, with the active connivance of officials from various banks managed to get enhancement in credit facilities.
In 2011, when DPIL had projected turnover of £219.76 million for the year 2012, whereas the actual turnover was £126.76 million only for 2011.
According to the CBI, the company had been submitting 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.
