CBI arrests two retired Bank of India officials in Rs 26.5-bn fraud

V V Agnihotri and P K Shrivastava, retired GM and DGM respectively, had allegedly granted undue favours to DPIL in granting credit limits

The CBI on Friday arrested two senior retired officers of Bank of India in connection with alleged loan fraud of Rs 26.54 billion by Vadodara-based Diamond Power Infrastructure Ltd. (DPIL) in the bank.

V V Agnihotri and P K Shrivastava, retired GM and DGM respectively, had allegedly granted undue favours to the company in granting credit limits, the officials said.

They said both have been arrested on Friday and will 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 the 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 the DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 26.54 billion as of June 29, 2016," the agency had said.