CBI Filed A Charge Sheet Against Vadodra Based Firm Of Defrauding A Consortium Of 11 Banks

On Friday, the Central Bureau of Investigation (CBI) has filed a charge sheet against three directors of Vadodra, Gujarat based company, Diamond Power Infrastructure Limited(DPIL) and five other including two bank officials for defrauding a  consortium of 11 banks  of Rs. 2,654.40 crore.

The Vadodra based company was into the business of manufacturing cables and other electrical equipments had availed credit from 11 banks  both private and public. This was dine through falsification of accounts, forgery of records from 2008.

The company directors Suresh Bhatnagar, Amit Bhatnagar and Sumit Bhatnagar allegedly managed to raise credit from consortium of 11 banks inspite of the company already appearing in RBI’s defaulting list and Export Credit Guarantee Corporation’s List at the same time.

CBI has alleged that company obtained fraudulent documents of sale from private companies to avail letter of Credit from Bank Of India and thereby fraudulently obtaining Central Value Added Tax (CENVAT) credit from the government. Majority of the payments were routed back to a private company.

All three directors were arrested but Suresh Bhatnagar was later released on bail owing to his health conditions. Bhatnagars had denied all the charges in the court.

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