No end to bank scams; CBI books Gujarat-based firm for whopping Rs 2,700 crore fraud
The CBI today said
it had registered a criminal case against a Vadodara-based company dealing in
electric cable and equipment and its directors for allegedly cheating various
banks to the tune of Rs 2,654 crore. The central probe agency also 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.
The CBI alleged that
DPIL, which manufactures electric cables and equipment, is promoted by S N
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 debit 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 defaulters 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.
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 firm, with active connivance of officials from various banks, managed to
get enhanced credit facilities. According to the CBI, the company had been
allegedly 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.
The CBI alleged that
DPIL extensively utilised cash credit limits for obtaining a large number of
letters of credits, and many of them could not be honoured by the company and
were thus “forced charged” on the credit limit. Bank of India’s exposure to the
company is Rs 670.51 crore, Bank of Baroda’s exposure is Rs 348.99 crore and
that of ICICIBank is Rs 279.46 crore, the CBI FIR said.
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