CBI arrests 2 retired Bank of India officials in Rs 2654 crore loan fraud case

The Central Bureau of Investigation (CBI) on Friday arrested two senior retired officers of Bank of India in connection with alleged loan fraud of Rs 2,654 crore by Vadodara-based Diamond Power Infrastructure Ltd. (DPIL).

According to CBI, V V Agnihotri and P K Shrivastava, retired GM and DGM respectively had allegedly granted undue favours in the sanction of credit limits to DPIL in year 2008. The loan was declared a non-performing asset in 2016-17.

CBI in an FIR had said that the promoters of DPIL Suresh Narain Bhatnagar and his sons Amit and Sumit were arrested in April this year. The company which manufactures electric cables and equipment, had fraudulently availed Credit Facilities from a Consortium of 11 Banks (Public Sector and Private Sector) since 2008, with an outstanding amount of Rs. 2654.40 crore as on June 29, 2016.

The Consortium includes Bank of India, Bank of Baroda, ICICI Bank, Allahabad Bank, Axis Bank, Dena Bank, SBI, IOB, IFCI, EXIM Bank of India and Corporation Bank and other financial institutions.

It is alleged that the company, with active collaboration with officials from various banks, managed to get enhanced credit facilities, in spite of the fact that they were already appearing in the Reserve Banks of India’s defaulter’s List.