Bank fraud: ED attaches assets worth ₹1,122 crore of Diamond Power

The Enforcement Directorate (ED) on Tuesday said it has attached assets worth ₹1,122 crore, including wind mills and an under-construction hotel, of Vadodara-based DPIL Pvt. Ltd in connection with its money laundering probe in a bank fraud case.

Diamond Power Infrastructure Limited (DPIL) is accused of cheating various banks to the tune of ₹2,654 crore.

The central probe agency had filed a criminal case against the firm and its promoters under the Prevention of Money Laundering Act (PMLA), after taking cognisance of a CBI FIR, and had searched its premises last month.

“The assets of DPIL and its related companies such as Diamond Power Transformer Ltd, Diamond Projects Ltd, Mayfair Leisures and Northway Spaces have been attached as part of the provisional order. The properties include plant, machinery, building and land of in Vadodara, three windmills in Bhuj, residential bungalows/flats of the Bhatnagar (promoters) family, unsold flats, under-construction hotel and other land parcels held by related companies of DPIL, all located in Vadodara,” the ED said.

The agency said the company, DPIL, through its related entities, 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.

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