The Enforcement Directorate (ED) on Thursday filed prosecution complaint against M/s. Diamond Power Infrastructure Ltd. (DPIL) and its Directors Amit Bhatnagar, Sumit Bhatnagar, Suresh Bhatnagar and 11 others before the Special Court (PMLA) in an alleged bank fraud case.
The ED had already attached immovable assets of DPIL to the tune of Rs. 1122.72 Crore on April 24, 2018. In the prosecution complaint, prayer has been made under section 4 of PMLA for confiscation of attached assets and punishment for Directors of DIPL Amit Bahtnagar, Sumit Bhatnagar,Suresh Bhatnagar and the other accused persons involved in the case.
Investigations under Prevention of Money Laundering Act, 2002 (PMLA) was initiated against M/s. DPIL and others, on the basis of a case registered by the Central Bureau of Investigation, Gandhinagar (CBI) against DPIL and others for causing loss to consortium of banks to the tune of Rs. 2654 cr.
Investigation conducted by the ED revealed that DPIL had availed term loans/ working capital loans, external commercial borrowings and non-convertible debentures from a consortium of 19 banks and institutions. It was also found that DPIL had allegedly misused the facility of letters of credit issued by their banks for payments of about Rs. 1222.74 Crore against fake/ paper purchases made from M/s. Archon Engicon Ltd., M/s. Accord Industries Ltd., M/s. Jindal Aluminium Foils P. Ltd. and M/s. Ruby Cables Ltd.
Investigation also reveals that DPIL had diverted about Rs. 5.80 Crore to their UAE based company M/s. Diamond Power Global Holding Ltd., and about Rs. 44 Crore to their group company M/s. Northway Spaces Ltd. DPIL also diverted about USD 40,32,000 (appx. Rs. 21 Crore) to their group company M/s. Mayfair Leisures Ltd., through a series of UAE based companies. ED sources said that when the banks conducted stock audits of DPIL, it was found that a large part of the stock of goods was missing from their premises. The total of such missing stock during 2008-2018 is about Rs. 453.54 Crore.
Investigation also revealed that DPIL has shown excess sales of about Rs. 270 Crore to PSUs like GETCO, Powergrid Corporation of India, PGVCL and DGVCL. M/s. DPIL has shown false trade receivables to the tune of Rs. 384 Crore in respect of 19 customers investigated by ED so far. Trade receivables, sales turnover and stock of goods are considered as important parameters by banks for grant of drawing power to customer -- DPIL. According to ED, by resorting to such unauthorized use of the funds issued by the consortium of banks, DPIL has caused a loss of Rs. 2654.40 Crore to the consortium of banks. Further investigation is under progress in the case.
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