In the ₹2,654-crore bank fraud case against Bhatnagars of Vadodara-based Diamond Power Infrastructure Ltd (DPIL), the Central agency, Directorate of Enforcement (ED) on Tuesday informed that it has attached immovable properties worth ₹1,122 crore.

The ED had recorded a case of money laundering against Diamond Power Infrastructure Pvt Ltd, Vadodara, Suresh Bhatnagar, Founder of the company and his sons Amit Bhatnagar, Managing Director, and Sumit Bhatnagar, Joint Managing Director. The crackdown came on the basis of an FIR filed by the Central Bureau of Investigation (CBI), ACB, Gandhinagar, for defrauding banks and financial institutions of ₹2,654.40 crore.

The ED attached properties of DPIL and its related companies such as Diamond Power Transformer Ltd, Diamond Projects Ltd, Mayfair Leisures and Northway Spaces.

Even as further investigation was under way, the ED attached properties including plant, machinery, building and land of DPIL and DPTL in Vadodara, three windmills in Bhuj, residential bungalows/flats of Bhatnagar family, unsold flats of Northway Spaces, under construction hotel of Mayfair Leisures and other land parcels held by related companies of DPIL, all located in Vadodara.

In a statement on Tuesday, the ED informed that investigations revealed that DPIL indulged in circuitous transactions of huge amounts with various parties including its related parties by issuing fake invoices without any actual sale/purchase of goods.

“This was done with dual intention of availing CENVAT credit fraudulently as well as projecting increased turnover before the banks in their financial records. DPIL has shown fake/fictitious entries of receivables in their books of accounts of around ₹1,000 crore from their debtors and on the basis of such books of account, DPIL is continuing to get credit from the banks," the statement said.

It was further found that most of these figures were exaggerated.

“Further, DPIL through its related party was able to gain funds fraudulently to the tune of ₹261 crore by twisting and manipulating the facility of Letter of Credit (LC) from the banks. DPIL also diverted huge amount of funds received as loan/cash credit to its real estate companies such as Northway Spaces and Mayfair Leisures," the ED statement said.

It was found that the Bhatnagar family through its web of companies and cross holdings were found to be the main decision makers, controllers, and thus, the beneficial owners of DPIL and all the related companies.

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