The Enforcement Directorate (ED) today attached properties worth Rs 1,122 crore of Vadodara-based Diamond Power Infrastructure Ltd (DPIL) in connection with an alleged bank fraud of over Rs 2,654 crore.

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Earlier, CBI arrested the promoters of DPIL, Narain Bhatnagar and his sons Amit and Sumit. The loan was declared a non-performing asset in 2016-17.

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.

First Published:Apr 24, 2018 1:21 PM IST