The Central Bureau of Investigation (CBI) on Friday arrested retired officials of Bank of India for allegedly doling out undue favours to a Gujarat-based company in grant of loans of Rs 2,654 crore. The company was granted loans by a consortium led by Bank of India even though it was on the defaulter list of the Reserve Bank of India (RBI).
V V Agnihotri and PK Shrivastava, retired general manager and deputy general manager, respectively, had allegedly granted undue favours to Vadodara-based Diamond Power Infrastructure Ltd (DPIL) in granting credit limits, CBI officials said. They said both have been arrested on Friday and would be produced before special court in Ahmedabad on Saturday.
The promoters of the company were arrested in April this year. The agency in an FIR had said that DPIL, which manufactures electric cables and equipment, is promoted by Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm. The loan, it said, was declared a non-performing asset in 2016-17. “It is alleged that DPIL, through its management, fraudulently availed of credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as of June 29, 2016,” the agency had said.
While Agnihotri was posted as AGM, Shrivastava was posted as DGM in the zonal office of Bank of India in Vadodara in 2007-08. Agnihotri was retired as GM and Shrivastava as DGM. “Both had shown undue favour in the sanction of the working capital limits to a Vadodara-based private firm in the year 2008. It was also alleged that both these officials were responsible for the processing and recommending the working capital limits to the tune of Rs 53.40 crore (approximately) in violation of the guidelines of the bank,” CBI spokesperson Abhishek Dayal said. He said they were also allegedly responsible for disbursal of limits without ensuring compliance of conditions stipulated in the sanction.
The firm and its directors managed to get term loans and credit facilities despite being on the RBI’s defaulters list and the Export Credit Guarantee Corporation’s caution list at the time of the initial sanction of credit limits by the consortium, the CBI alleged.
When the consortium was formed in 2008, Axis Bank was the lead bank for the term loan and the Bank of India was the lead bank for cash credit limits. It is alleged that the firm, with active connivance of officials from various banks, managed to get enhanced credit facilities. As per the CBI, the company had allegedly submitted false stock statements to the lead bank by treating receivables more than 180 days (non-current asset) as less than 180 days (current asset) to get more drawing power in their cash credit accounts.