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Diamond Power hits lower circuit limit post arrests

The three promoters were picked up from a hotel in Udaipur last night, PTI reported.

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Last Updated: Apr 18, 2018, 12.58 PM IST
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NEW DELHI: Diamond Power Infrastructure hit lower circuit limit of 5 per cent on Wednesday after the CBI arrested promoters and directors of the company in connection with Rs 2,654 crore fraud case.

At 12:33 pm, the stock traded at Rs 5.05 on the BSE.

The three promoters - S N Bhatnagar and his sons Amit and Sumit - were picked up from a hotel in Udaipur last night, PTI reported.

The CBI had filed a case against the promoters two weeks ago. According to the probe agency, DPIL had fraudulently availed credit facilities from a consortium of 11 banks -- both public and private -- from 2008, leading to an outstanding debt of Rs 2,654.40 crore as of June 29, 2016.

It was declared a non-performing asset in 2016-17.

The CBI alleged that DPIL extensively utilised cash credit limits for securing a number of letters of credit, and many of them could not be honoured by the company and were thus "forced charged" on the credit limit.
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