2025 (9) TMI 262

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.... Diamond Power Transformers Limited 2. As per the facts of the case, Central Bureau of Investigation (CBI), Gandhinagar has registered FIR No. 0292018A0006 dated 26.03.2018 against M/s Diamond Power Infrastructure Ltd., Vadodara (DPIL), Shri Suresh Narain Bhatnagar, Founder of DPIL, Shri Amit Suresh Bhatnagar, Managing Director, DPIL, Shri Sumit Suresh Bhatnagar, Joint Managing Director of DPIL, Unknown public servants of various banks and unknown others for commission of offence under section 420, 467, 468, 471 r/w 120-B of IPC and Section 13(2) r.w.s. 13(1)(d) of the Prevention of Corruption Act, 1988. The said FIR inter alia reveals that: a) M/s DPIL has caused a loss of Rs. 2654.40 Crore to a consortium of 11 banks (including public as well as private sector banks) and Financial Institutions. The details of exposure of various banks are as under: S. No. Name of Bank/Financial Institution Exposure (Rs. in Crores) 1 Bank of India 670.51 2 Bank of Baroda 348.99 3 ICICI Bank 279.46 4 Allahabad Bank 227.96 5 Axis Bank 255.32 6 Dena Bank 177.19 7 State Bank of India 266.37 8 Indian Overseas Ban....

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....he consortium members. The banks directed DPIL to deposit all the receivables in Trust and Retention Account with Bank of India, out of which 2% was be deducted against the outstanding. However, M/s. DPIL opened accounts with other banks (outside the consortium) and deposited the receivables to these accounts. By doing so, they diverted the funds to the tune of Rs. 70 Crores. f) DGGSTI, Vadodara has issued a Show Cause Notice to M/s. DPIL for fraudulently availing CENVAT credit to the tune of Rs. 100.80 Crore by submitting bogus purchase invoices, even though, no material had been received. This indicates that fictitious purchases to the tune of Rs. 500 Crore were shown by DPIL to avail the said CENVAT credit and bank credits. g) The above modus operandi involving forged documents and diversion of funds has resulted in availability of stock to the tune of Rs. 338.44 Crore only which is hugely inadequate for repayment of loans to the tune of Rs. 2654.40 Crore. On the basis of the aforesaid, FIR was registered for the commission of offence which are scheduled offence u/s 2(1)(y) of the PMLA, 2002 against the following persons dated 05.04.2018: (1) M/s. D....

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....td., and M/s. Accord Industries Ltd. (ii) Shri Bhagwandas Jindal, Director of M/s. Jindal Aluminium Foils Pvt. Ltd. Vadodara (iii) Sh. Sanjay Vimalbhai Deora, Director of M/s Deora Wires and Machines Pvt. Ltd. (iv) Sh. Umesh Bhatt, AGM, (Sales-Tender business) of D-1. (v) Sh. Arvind Yadav, CA of D-1 (vi) Sh. Jayram C. Marathe, Executive Director of D-1 (vii) Sh. Chirag Gada Director of M/s Ruby Cables (viii) Sh. Rajesh Nimkar, Director of D-2 (ix) Sh. Sangram Barot, COO of D-2 (x) Smt. Mona Amit Bhatnagar (xi) Smt. Richa Sumit Bhatnagar (xii) Sh. Divyesh Saxena, Sr. Manager, Bank of India (xiii) Sh. Mohan Hari Zingade, AGM, Bank of India Accordingly, on the basis of material procured by Directorate of Enforcement, Ahmedabad Zonal Office against the accused persons found the proceeds of crime related to the scheduled offence registered against M/s DPIL and others. Thereafter, proceeds of crime as defined u/s 2(1)(u) of PMLA, 2002 amounting to Rs. 1122,72,08,030/- were provisionally attached vide PAO No. 02/2018 on 24.04.2018. Thereafter, an Original Complaint No. 977/201....

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.... and thereafter, in case of any excess amount, then towards the dues of the unsecured creditors. Ld. Counsel submitted that the banks and finance companies are the victims of the fraud and now being made to lose their valuable security and the present liquidator has been appointed to satisfy the claim of all the creditors as per preferential rights. Prayer is accordingly made to allow the present appeal and release the aforementioned property. 4. On the other hand, Ld. Counsel for Respondent ED strongly controverted the submissions made by Ld. Counsel for the appellant Liquidator. He also pointed out the incriminating material against the accused company M/s DPIL for committing the fraud in collusion with the bank officials and thereby caused a loss of 2654.40 Crores to the consortium of 11 banks and some financial institutions. Ld. Counsel for the Respondent submitted that credit facilities provided by various banks and financial institutions were not utilized for the specific purpose, but for personal purposes and other works. Non-payment of dues of banks and other financial institutions resulted in loss to the consortium of Banks and thereby declaring them as NPAs, which a....