ED attaches property worth Rs 1,122 cr of Vadodara-based DPIL firm
New Delhi, April 24 : The Enforcement Directorate (ED) on Tuesday attached property worth Rs 1,122 crore belonging to Vadodara-based DPIL firm in connection with a Rs 2,654.40 crore bank fraud case.
The ED has also attached some belongings of promoter-directors of the Diamond Power Infrastructure Pvt. Ltd. -- Suresh Narain Bhatnagar, his two sons Amit Suresh Bhatnagar and Sumit Suresh Bhatnagar under Prevention of Money Laundering Act (PMLA).
The DPIL, which deals in cables and other electrical equipment, is alleged to have availed credit facilities fraudulantly since 2008, leaving behind a total outstanding debt of Rs 2,654.40 crore as of June 29, 2016 sanctioned by a consortium of banks and private organisation.
The Central Bureau of Investigation (CBI), which is also probing corruption charges in the case, had on April 18 arrested the three from Udaipur in Rajasthan nearly 23 days after it filed an FIR against them.
The ED is probing financial irregularities under money laundering case it has filed based on the CBI FIR.
On April 9, the ED had also conducted raids at the corporate office, factory premises and the residences of the directors of DPIL.
The CBI had on March 26, filed a case against DPIL and its directors for defrauding the consortium of 11 banks. The loan availed by them was declared a non-performing asset (NPA) in 2016-17.
The company managed to get term loans and credit facilities though it figured in the Reserve Bank of India's list of defaulters and the caution list of Export Credit Guarantee Corp of India (ECGCI) at the time of initial sanction of credit limits by the consortium.
Bank of India, which tops the list with Rs 670.51 crore of loans, is followed by Bank of Baroda (Rs 348.99 crore), ICICI (Rs 279.46 crore), State Bank of India (Rs 266.37 crore), Axis Bank (Rs 255.32 crore), Allahabad Bank (Rs 227.96), Dena Bank (Rs 177.19 crore), Corporation Bank (109.12 crore), Exim Bank of India (Rs 81.92 crore), IOB (Rs 71.59 crore) and IFCI (58.53 crore).
The CBI FIR said DPIL, through its founder and directors associated in the criminal conspiracy with unidentified bank officials of various banks, cheated those banks by way of misappropriating public funds through falsification of accounts, creation of false documents, forgery of records and knowingly used such records as genuine.
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CM Siddaramaiah appears before Lokayukta police for questioning in MUDA case
Mysuru (PTI): Karnataka Chief Minister Siddaramaiah appeared before the Lokayukta police here on Wednesday in response to the summons issued to him for questioning in the MUDA site allotment case.
The CM, who has been named as accused number 1 in the FIR registered by the Lokayukta police, is facing allegations of illegalities in the allotment of 14 sites to his wife Parvathi B M by the Mysuru Urban Development Authority (MUDA).
They had on October 25 questioned his wife, who has been named as accused number 2.
Siddaramaiah, his wife, brother-in-law Mallikarjuna Swamy and Devaraju -- from whom Swamy had purchased a land and gifted it to Parvathi -- and others have been named in the FIR registered by the Mysuru-located Lokayukta police establishment on September 27.
Swamy and Devaraju have already deposed before the Lokayukta police.
Meanwhile, the Karnataka High Court had on Tuesday issued notice to Siddaramaiah and others on a writ petition filed by RTI activist Snehamayi Krishna, seeking a direction to transfer the case to CBI.
Justice M Nagaprasanna, who also issued notice to Parvathi, Swamy, Union of India, the State government, CBI, Lokayukta and others, directed the Lokayukta to place on record investigation conducted in the case so far.
The court posted the next hearing to November 26.
On October 24, the CM filed an appeal before the division bench of the High Court, challenging the decision of a single judge bench in connection with the MUDA site allotment case that had come as a setback to him.
The bench of Justice M Nagaprasanna had on September 24 dismissed the CM's petition challenging Governor Thaawarchand Gehlot's approval for a probe against him in the case, observing that the gubernatorial order nowhere "suffers from want of application of mind".
Siddaramaiah had challenged the legality of Gehlot's sanction for the investigation against him in the alleged irregularities in the allotment of 14 sites by MUDA in a prime locality.
Following the High Court order, a Special Court here on the very next day had ordered a Lokayukta police probe against Siddaramaiah, and directed to file the investigation report by December 24.
Parvathi, meanwhile, had written to MUDA to cancel 14 sites allotted to her and the MUDA had accepted it.
On September 30, the ED filed an enforcement case information report (ECIR) to book the CM and others taking cognisance of the Lokayukta FIR, and is also probing the case.
In the MUDA site allotment case, it is alleged that 14 compensatory sites were allotted to Siddaramaiah's wife in an upmarket area in Mysuru (Vijayanagar Layout 3rd and 4th stages), which had higher property value as compared to the location of her land which had been "acquired" by MUDA.
The MUDA had allotted plots to Parvathi under a 50:50 ratio scheme in lieu of 3.16 acres of her land, where it developed a residential layout.
Under the controversial scheme, MUDA allotted 50 per cent of developed land to the land losers in lieu of undeveloped land acquired from them for forming residential layouts.
It is alleged Parvathi had no legal title over this 3.16 acres of land at survey number 464 of Kasare village on the outskirts of Mysuru.
