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HYDERABAD, April 10

THE XXIII Metropolitan Magistrate Court of Hyderabad has issued non-bailable warrants against Mr S.N. Bhatnagar, Mr Amit Suresh Bhatnagar and Mr Sumit Suresh Bhatnagar, the Chairman and Managing Director and Joint Managing Directors of the Baroda-based Diamond Cables Ltd (DCL), respectively.

The NBWs were issued on a criminal case filed by the Hyderabad-based Nagarjuna Construction Company Ltd (NCCL) against DCL alleging that the latter had "fraudulently" invoked Rs 97.55 lakh worth bank guarantees furnished by it.

According to the chargesheet, NCCL had placed a purchase order with DCL for supply of AAA aluminium conductors valued about Rs 2.03 crore. As per the terms of understanding, NCCL had furnished three bank guarantees for the entire purchase consideration. Following this, DCL had supplied the first consignment worth Rs 97.55 lakh. Accordingly, NCCL had remitted the payment.

Later, NCCL had written to DCL for return of the bank guarantee of Rs 97.55 lakh but to no avail. Meanwhile, DCL had supplied the second consignment and invoked the remaining two bank guarantees towards the balance purchase consideration of Rs 105.05 lakh.

NCCL had sent several reminders to DCL for payment of the excess amount of Rs 97.55 lakhs drawn by the Baroda-based company but the latter did not return the money.

Following the issue of NBWs, all the accused in the case had approached the Andhra Pradesh High Court seeking quashing of the criminal proceedings initiated against them, which the High Court rejected.

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