New Delhi, India

The directors of Diamond Power Infrastructure Limited (DPIL) were on Saturday arrested for not repaying a bank loan.

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The directors of the Vadodara-based cable and electrical equipment maker who have been booked by the Central Bureau of Investigation include Managing Director Amit Bhatnagar, and Joint Managing Director Sumit Bhatnagar.

The Central Bureau of Investigation (CBI) had on Thursday registered a fraud case for Rs 2,654 crores against DPIL promoter SN Bhatnagar and his sons, Amit Bhatnagar and Sumit Bhatnagar.

Based on a grievance letter, the Prime Minister's Office (PMO) directed the Ministry of Finance, CBI, and Enforcement Directorate (ED) on March 6, to ascertain the facts in the case for prompt action.

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The agencies probed the matter and the results of the investigation were promptly shared with various divisions of the Finance Ministry.

The Department of Financial Services, Central Board of Direct Taxes (CBDT), Ministry of Corporate Affairs, CBI, and the Enforcement Directorate worked as a joint team to ensure an optimal outcome.

The Finance Ministry also directed the banks for providing full details and the filing of the First Information Report (FIR).

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DPIL and its directors have been charged by the CBI of fraudulently availing loans from 11 banks, and amassing a debt of Rs 2,654 crores as on June 29, 2016. 

The company and its directors managed to get the term loans and credit facilities, in spite of the fact that they were already appearing on the defaulters list of the Reserve Bank of India (RBI) and Export Credit Guarantee Corporation (ECGC) caution list at the time of initial sanction of credit limits by a consortium of 11 public and private banks.