Diamond Power Discharged in CBI and ED PMLA Matters
POWER & RENEWABLE ENERGY

Diamond Power Discharged in CBI and ED PMLA Matters

Diamond Power Infrastructure has been discharged by a special court in Ahmedabad in proceedings under the Prevention of Money Laundering Act, 2002, with the order pronounced on sixth May 2026 and received by the company on seventh May 2026. The decision ends attachments placed by the Enforcement Directorate and related criminal proceedings that had restricted substantial fixed and current assets since 2018. The affected assets include fixed assets valued at approximately Rs 10 billion and receivables around Rs nine bn, including holdings of its subsidiary Diamond Power Transformers Limited.

The discharge follows earlier favourable rulings from the Gujarat High Court and the company notes that the court order relieves an operational and financial overhang that materially constrained business flexibility. The company had sought remedies after a change of management under the Insolvency and Bankruptcy Code and subsequent legal action has sought release of assets so that normal operations could resume. The lifting of embargoes is expected to permit mobilisation of working capital and long term funding against a very large fixed asset base.

Management reports that promoter funding has already supported a turnaround and that judicial clarity should accelerate recovery of pre?NCLT receivables and improve creditor and customer confidence. With improved access to fund based and non?fund based facilities the company plans to increase utilisation of under?utilised manufacturing capacity across plants and business divisions. The company also intends to pursue bank guarantee limits to participate in national, state and international contracts.

Diamond Power says it will prioritise modernisation, debottlenecking and balancing equipment projects to raise production efficiencies and support expansion of ancillary infrastructure. The development is described as reinforcing the clean slate principle available to successful resolution applicants under the Insolvency and Bankruptcy Code and providing momentum for the next phase of growth. With over five decades in the power transmission and distribution sector the company remains focused on long term value creation for stakeholders.

Diamond Power Infrastructure has been discharged by a special court in Ahmedabad in proceedings under the Prevention of Money Laundering Act, 2002, with the order pronounced on sixth May 2026 and received by the company on seventh May 2026. The decision ends attachments placed by the Enforcement Directorate and related criminal proceedings that had restricted substantial fixed and current assets since 2018. The affected assets include fixed assets valued at approximately Rs 10 billion and receivables around Rs nine bn, including holdings of its subsidiary Diamond Power Transformers Limited. The discharge follows earlier favourable rulings from the Gujarat High Court and the company notes that the court order relieves an operational and financial overhang that materially constrained business flexibility. The company had sought remedies after a change of management under the Insolvency and Bankruptcy Code and subsequent legal action has sought release of assets so that normal operations could resume. The lifting of embargoes is expected to permit mobilisation of working capital and long term funding against a very large fixed asset base. Management reports that promoter funding has already supported a turnaround and that judicial clarity should accelerate recovery of pre?NCLT receivables and improve creditor and customer confidence. With improved access to fund based and non?fund based facilities the company plans to increase utilisation of under?utilised manufacturing capacity across plants and business divisions. The company also intends to pursue bank guarantee limits to participate in national, state and international contracts. Diamond Power says it will prioritise modernisation, debottlenecking and balancing equipment projects to raise production efficiencies and support expansion of ancillary infrastructure. The development is described as reinforcing the clean slate principle available to successful resolution applicants under the Insolvency and Bankruptcy Code and providing momentum for the next phase of growth. With over five decades in the power transmission and distribution sector the company remains focused on long term value creation for stakeholders.

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