Case against Vadodara company for defaulting 2654 cr loan

New Delhi : The Central Bureau of Investigation (CBI) on Thursday registered a case against Diamond Power Infrastructure Limited (DPIL) and its directors for defrauding 11 banks to the tune of Rs 2654 crore.

The case has been registered against DPIL Promoter SN Bhatnagar, Managing Director Amit Bhatnagar, and Joint Managing Director Sumit Bhatnagar. Vadodara based DPIL is the manufacturer of cables and other electrical equipment.

It is alleged that M/s DPIL, through its management, has fraudulently availed Credit Facilities from a Consortium of 11 Banks (Public Sector and Private Sector) since 2008, leaving behind an outstanding debt of Rs. 2654.40 crore as on June 29, 2016.

The company and its directors managed to get the term loans and credit facilities, in spite of the fact that they were already appearing on the defaulters list of the Reserve Bank of India (RBI) and Export Credit Guarantee Corporation (ECGC) caution list at the time of initial sanction of credit limits by the consortium.

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 CC Limits. (ANI)