Diamond Power Infrastructure Limited has achieved a significant legal victory with its discharge from cases initiated by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in 2018. This development marks a major milestone in the release of the company’s assets, valued at over ₹1,900 crore, paving the way for its revival and future growth.
The company, which was previously embroiled in legal proceedings under the Prevention of Money Laundering Act (PMLA), has been exonerated by the Hon’ble Court of the Principal District & Sessions Judge, Ahmedabad. The judgement, received on 7th May 2026, pertains to PMLA Case Nos. 2/2024 and resolves significant legal challenges faced by the company.
The discharge comes after substantial fixed and current assets of Diamond Power Infrastructure were attached by the Enforcement Directorate, severely impacting the company’s operational and financial flexibility. The assets in question include fixed assets worth over ₹1,000 crore and receivables amounting to approximately ₹900 crore, including those of its subsidiary, Diamond Power Transformers Limited.
Following the takeover and revival of the company by new management under the Insolvency and Bankruptcy Code (IBC), Diamond Power Infrastructure approached various judicial forums for legal remedies. The Gujarat High Court had previously quashed related proceedings and allowed the company’s discharge from prosecution under CBI/ED proceedings.
With the legal clarity now achieved, Diamond Power Infrastructure expects to leverage its substantial asset base to raise working and growth capital. The company anticipates realising outstanding pre-NCLT receivables and recoveries from debtors. These developments are set to accelerate operational expansion, enhance lender and stakeholder confidence, and improve financial flexibility.
The company plans to expedite projects related to balancing equipment, debottlenecking, modernisation, and expansion of ancillary infrastructure to boost production efficiencies and support future growth. The recent legal resolution underscores the ‘clean slate’ principle for successful resolution applicants under the IBC, providing momentum for the company’s next growth phase.
With a legacy spanning over five decades in the power transmission and distribution sector, Diamond Power Infrastructure Limited remains committed to strengthening its manufacturing capabilities in power cables and conductors, focusing on long-term value creation for all stakeholders.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).