The Central Bureau of Investigation on Friday filed a chargesheet against the Vadodara-based Diamond Power Infrastructure Power Limited, its three directors and two former officials of the Bank of India (BoI) in a case of cheating a consortium of 11 banks to the tune of Rs. 2,654 crore
Among those arraigned are company directors Suresh Narain Bhatnagar and Amit and Sumit Bhatnagar; its finance official Niraj Sheth, the then deputy general manager Pradip Kumar Srivastava and assistant general manager Vijay Venkatesh Agnihotri of BoI; and Ruby Cables Limited director Chirag Gada.
According to the CBI, the accused falsified accounts, created false documents and forged records. The company, which is in the manufacture of cables and other electrical equipment, had fraudulently availed itself of credit from the consortium of banks since 2008. The loans and credit were given though the company had been on the RBI’s list of defaulters and the ECGC’s caution list at the time of initial sanction.
The CBI probe revealed that since 2007, the accused bank officials facilitated fraudulent appraisal and credit disbursal. The other accused submitted forged bills of exchange and false documents of another private cables company without actual purchase for taking Letter of Credit from the BoI. The company’s turnover was inflated for more credit limits and Central Value Added Tax credit from the government. A majority of payments made from the cash credit account were routed back to the company.
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