Another Bank Fraud Worth Rs 2654 Crore Shocks Banking Sector

CBI has registered a criminal case against a Vadodara-based company who run an electric cable and equipment business.

CBI has launched searches at the official and residential premises of the company Diamond Power Infrastructure Ltd. (DPIL), and its directors in Vadodara in Gujarat, a CBI spokesperson said.

CBI claims that DPIL, which manufactures electric cables and equipment, is promoted by SN Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar, who are also the executives of the firm.

“It is alleged that DPIL, through its management, (had) fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debt of Rs 2,654.40 crore as on June 29, 2016,” it said.

The loan, it said, was declared a non-performing asset in 2016-17. The company and its directors managed to get the term loans and credit facilities in spite of the fact that they were named in the Reserve Bank of India’s defaulter’s 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.

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