Enforcement Directorate Raids Vadodara firm Over Banks Fraud Of Rs 2654 Cr

| April 9 , 2018 , 16:13 IST

The Enforcement Directorate on Monday conducted multiple raids in connection with a money laundering case against a Vadodara-based company for allegedly cheating various banks to the tune of Rs 2,654 crore.

Officials said the raids were being carried out at seven places in Vadodara district and the premises of the firm Diamond Power Infrastructure Ltd (DPIL).

As per reports, the corporate office of the company in Gorwa area of the city, factories in Vadadala and Ranoli and residential premises of its executives in Nizampura and New Alkapuri were being raided.

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ED conducted these raids on the basis of a criminal complaint under the Prevention of Money Laundering Act (PMLA) against the company. The agency is probing if the alleged defaulted loans were laundered to create illegal assets and black money by the accused.

Earlier CBI had registered a FIR against DPIL and had also conducted raids.

The CBI had alleged that DPIL, which manufactures electric cables and equipment, is promoted by SN Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar, who were also the executives of the firm.

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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 debt of Rs 2,654.40 crore as on June 29, 2016. The loan amount of Rs 2,654 crores was declared a non-performing asset in 2016-17.

As per CBI, the company and its directors managed to get the term loans in spite of the fact that they were named in the Reserve Bank’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 Congress Party has alleged that the owners of DPIL have an active connection with senior BJP leaders. Congress spokesperson Pawan Khera said the firm was one of the chief financiers of BJP in Gujarat.