NEW DELHI: The Central Bureau of Investigation on Friday arrested a retired general manager and a deputy general manager of Bank of India in its probe related to Rs 2,654 crore bank fraud by Gujarat based Diamond Power Infrastructure Ltd (DPIL).The arrested officials have been identified as V V Agnihotri (retired GM) and P K Srivastava (retired DGM).DPIL promoters Suresh Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar had allegedly cheated a consortium of 11 banks following which the CBI filed an FIR in April this year.The company allegedly availed loans despite the fact that it was named in the RBI’s defaulters’ list and the Export Credit Guarantee Corporation (ECGC) caution list, which, officials say, couldn't have been possible without the involvement of bank officials.DPIL, engaged in manufacturing electric cables and other electrical equipment, fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as on June 29, 2016, CBI said.At the time of formation of consortium in 2008, Axis Bank (with an exposure of Rs 255.32 crore) was the lead bank for the term loan and Bank of India (with an exposure of Rs 670.51crore) was the lead bank for cash credit limits. Other banks which provided loans to DPIL include Bank of Baroda (Rs 348.99 crore), ICICI Bank (Rs 279.46 crore), Allahabad Bank (Rs 227.96 crore), Dena Bank (Rs 177.19 crore), State Bank of India (Rs 266.37 crore), Corporation Bank (109.12 crore) and others.It is alleged that the firm, with active connivance of officials from various banks, managed to get enhanced credit facilities.According to the CBI, the company had been allegedly submitting false stock statements to the lead bank by treating receivables more than 180 days (noncurrent asset) as less than 180 days (current asset) to get more drawing power in their cash credit accounts. CBI said the company also inflated its turnover figures.The accounts of DPIL in Bank of India and Bank of Baroda were declared NPAs on February 2016 by RBI based on asset quality report conducted by it while accounts with other banks were declared NPAs from December 2017. The company, CBI alleged, diverted funds to accounts opened in other banks.The company had been allegedly submitting false stock statements to the lead banks by treating receivables more than 180 days (non-current assets) as less than 180 days (current asset) to get more drawing power in their cash credit accounts.<doc-sep>The CBI on Friday arrested two senior retired officers of in connection with alleged loan fraud of Rs 26.54 billion by Vadodara-based Diamond Power Infrastructure Ltd. (DPIL) in the bank. V V Agnihotri and P K Shrivastava, retired GM and DGM respectively, had allegedly granted undue favours to the company in granting credit limits, the officials said. They said both have been arrested on Friday and will be produced before special court in Ahmedabad on Saturday. The promoters of the company were arrested in April this year. The agency in an FIR had said that the DPIL, which manufactures electric cables and equipment, is promoted by Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm. The loan, it said, was declared a in 2016-17. "It is alleged that the DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 (both public and private) since 2008, leaving behind an outstanding debit of Rs 26.54 billion as of June 29, 2016," the agency had said.<doc-sep>The Central Bureau of Investigation today arrested two retired senior officers of Bank of India Ltd. in connection with an alleged loan fraud of Rs 2,654 crore by Vadodara-based Diamond Power Infrastructure Ltd. VV Agnihotri and PK Shrivastava, retired general manager and deputy general manager respectively, had allegedly granted undue favours to the power company in granting credit limits, CBI officials said. Both have been arrested today and will be produced before special court in Ahmedabad tomorrow. The promoters of the company were arrested in April this year. The agency in an FIR had said that the DPIL, which manufactures electric cables and equipment, is promoted by Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm The loan, it said, was declared a non-performing asset in 2016-17. "It is alleged that the DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as of June 29, 2016," the agency had said.<doc-sep>Both have been arrested today and will be produced before special court. (Representational) The CBI today arrested two senior retired officers of Bank of India in connection with alleged loan fraud of Rs 2,654 crore by Vadodara-based Diamond Power Infrastructure Ltd. (DPIL). V V Agnihotri and P K Shrivastava, retired GM and DGM respectively, had allegedly granted undue favours to the company in granting credit limits, the officials said. They said both have been arrested today and will be produced before special court in Ahmedabad tomorrow. The promoters of the company were arrested in April this year. The agency in an FIR had said that the DPIL, which manufactures electric cables and equipment, is promoted by Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm The loan, it said, was declared a non-performing asset in 2016-17. "It is alleged that the DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as of June 29, 2016," the agency had said While V V Agnihotri was posted as AGM, P K Shrivastava was posted as DGM in the Zonal office of Bank of India in Vadodara in 2007-08. V V Agnihotri had retired as GM and P K Shrivastava as DGM. "Both had shown undue favour in the sanction of the working capital Limits to a Vadodara based private firm in the year 2008. It was also alleged that both these officials were responsible for the processing and recommending the Working capital Limits to the tune of Rs. 53.40 crore (approx.) in violation of the guidelines of the bank," CBI spokesperson Abhishek Dayal said. He said they were also allegedly responsible for disbursal of limits without ensuring compliance of conditions stipulated in the sanction. The company and its directors managed to get term loans and credit facilities despite being on the Reserve Bank of India's defaulters list and the Export Credit Guarantee Corporation's caution list at the time of the initial sanction of credit limits by the consortium, the CBI alleged. When the consortium was formed in 2008, the Axis Bank was the lead bank for the term loan and the Bank of India was the lead bank for cash credit limits It is alleged that the firm, with active connivance of officials from various banks, managed to get enhanced credit facilities. According to the CBI, the company had allegedly submitted false stock statements to the lead bank by treating receivables more than 180 days (non-current asset) as less than 180 days (current asset) to get more drawing power in their cash credit accounts.<doc-sep>
NEW DELHI: The Central Bureau of Investigation on Friday arrested a retired general manager and a deputy general manager of Bank of India in its probe related to a Rs 2,654-crore bank fraud by Gujarat-based Diamond Power Infrastructure Ltd ( DPIL ). The arrested officials have been identified as V V Agnihotri (retired GM) and P K Srivastava (retired DGM). DPIL promoters Suresh Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar had allegedly cheated a consortium of 11 banks, following which CBI registered an FIR in April this year. The company allegedly availed loans despite the fact that it was named in the RBI’s defaulters’ list and the Export Credit Guarantee Corporation caution list, which officials say couldn't have been possible without the involvement of bank officials. DPIL, engaged in manufacturing electric cables and other electrical equipments, fraudulently availed credit facilities from a consortium of 11 banks since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as on June 29, 2016, CBI said. At the time of formation of consortium in 2008, Axis Bank (with an exposure of Rs 255.32 crore) was the lead bank for the term loan and Bank of India (with an exposure of Rs 670.51crore) was the lead bank for cash credit limits. It is alleged that the firm, with active connivance of officials from various banks, managed to get enhanced credit facilities. The company had been allegedly submitting false stock statements to the lead bank by treating receivables more than 180 days (non current asset) as less than 180 days (current asset) to get more drawing power in their cash credit accounts. CBI said the company also inflated its turnover figures. Facebook Twitter Linkedin EMail