Enforcement Directorate (ED) has filed prosecution complaint against Diamond Power Infrastructure Ltd (DPIL), its directors Amit Bhatnagar, Sumit Bhatnagar, Suresh Bhatnagar and 11 others before the Ahmadabad PMLA Special Court in a bank fraud case, an official release said here on Thursday.
The central probe agency had already attached immovable assets of DPIL to the tune of Rs 1122.72 crore on April 24 and prayed for the confiscation of the property under section 4 of Prevention of Money Laundering Act (PMLA) and for the punishment for Directors of DIPL Amit Bahtnagar, Sumit Bhatnagar, Suresh Bhatnagar and the other accused persons involved in the case as well.
The move comes after the investigations under PMLA were initiated against DPIL and others, on the basis of registration of case by Gandhinagar Central Bureau of Investigation (CBI) against DPIL and others for causing loss to consortium of Banks to the tune of Rs 2654 crore.
Investigation conducted so far by the ED revealed that DPIL had availed term loans or working capital loans, external commercial borrowings and non-convertible debentures from a consortium of 19 banks and institutions.
Further, DPIL had misused the facility of letters of credit issued by their banks for payments of about Rs 1222.74 crore against fake or paper purchases made from Archon Engicon Ltd, Accord Industries Ltd, Jindal Aluminium Foils P Ltd and Ruby Cables Ltd.
Investigation also revealed that DPIL had diverted about Rs 5.80 crore to their UAE based company Diamond Power Global Holding Ltd and about Rs 44 crore to their group company, Northway Spaces Ltd.
The said company had also diverted about US dollar 40,32,000 (Rs 21 crore) to their group company Mayfair Leisures Ltd through a series of UAE based companies.
The central agency, during investigation, found that when the concerned banks conducted stock audits of DPIL, it was revealed that a large part of the stock of goods was missing from their premises. The total of such missing stock during 2008 to 2018 was about Rs 453.54 crore.
Investigation also revealed that DPIL has shown excess sales of about Rs 270 crore to Public Sector Undertakings such as GETCO, Powergrid Corporation of India, PGVCL and DGVCL.
“Investigations confirmed that DPIL has shown false trade receivables to the tune of Rs 384 crore in respect of 19 customers so far”, the ED officials said.
“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”, the ED further added.
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