CBI arrests 3 company directors in Rs 2,654 crore bank fraud case

The CBI has arrested three promoterdirectors of a Vadodarabased company in connection with its ongoing investigation into a case of Rs 265440 crore fraud committed on a consortium of banks officials said on WednesdayA Central Bureau of Investigation CBI official told IANS The agency has arrested the promoterdirectors of the Diamond Power Infrastructure Ltd DIPL Suresh Narain Bhatnagar his two sons Amit Suresh Bhatnagar and Sumit Suresh BhatnagarThe CBI located the accused in Udaipur in Rajasthan on Tuesday evening with the assistance of Gujarat Police and arrested them on Wednesday morningThe official said they would be produced before the Special Judge of CBI Cases in AhmedabadOn March 26 the CBI filed a case against DPIL and its directors for defrauding the consortium of 11 banks of Rs 265440 crore The loan availed by them was declared a nonperforming asset NPA in 201617Since the filing of case the agency has carried out searches at the corporate office two factory premises and the residences of the directors of the firmAccording to the CBI FIR the DPIL which is engaged in the production of cables and other electrical equipment fraudulently availed credit facilities since 2008 leaving behind a total outstanding debit of Rs 265440 crore as of June 29 2016The agency said that the company managed to get term loans and credit facilities thought it figured in the Reserve Bank of Indias list of defaulters and the caution list of Export Credit Guarantee Corp of India ECGCI at the time of initial sanction of credit limits by the consortiumAt the time of consortiums formation in 2008 Axis Bank was the lead bank for the term loan and the Bank of India was the lead bank for cash credit CC limitsThe Bank of India which tops the list with Rs 67051 crore of loans is followed by Bank of Baroda Rs 34899 crore ICICI Bank Rs 27946 crore State Bank of India Rs 26637 crore Axis Bank Rs 25532 crore Allahabad Bank Rs 22796 Dena Bank Rs 17719 crore Corporation Bank 10912 crore Exim Bank of India Rs 8192 crore IOB Rs 7159 and the IFCI Bank 5853 croreThe company allegedly with the support of officials from various banks managed to obtain enhancement in credit facilitiesThe FIR said the DPIL through its founder and directors associated in the criminal conspiracy with the unidentified bank officials of various banks cheated those banks by way of misappropriating public funds through falsification of accounts creation of false documents forgery of records and knowingly using such records as genuineCatch up on all the latest Mumbai news crime news current affairs and also a complete guide on Mumbai from food to things to do and events across the city here Also download the new midday Android and iOS apps to get latest updatesThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever