CBI Arrests Diamond Power Infra Promoters For Rs 2,600-Crore Bank Fraud
The Central Bureau of Investigation today arrested three promoters and directors of Diamond Power Infrastructure Ltd., after banks alleged fraud worth about Rs 2,654 crore.
The investigating agency arrested Suresh Bhatnagar, Amit Bhatnagar and Sumit Bhatnagar after registering a case against the Vadodara-based company.
The arrests come even as agencies are still probing India’s largest banking fraud. Jeweller Nirav Modi and his uncle Mehul Choksi’s firms allegedly duped banks, including Punjab National Bank, of nearly Rs 14,000 crore by obtaining loans overseas on fake guarantees.
In the latest case involving Diamond Power, the company allegedly cheated banks by falsifying accounts, creating false documents and forging records, according to the case registered by the CBI. BloombergQuint has obtained a copy of the document.
The banks which have exposure to Diamond Power are: Bank of India, Bank of Baroda, ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, Dena Bank, Allahabad Bank, Indian Overseas Bank, Exim Bank and Corporation Bank.
The three people arrested by CBI will be produced before a Special court in Ahmedabad.