Diamond Power Infrastructure Limited has announced a landmark legal and corporate milestone, securing a discharge in both CBI and ED/PMLA proceedings. The discharge order in PMLA Case No. 2/2024 was pronounced by the Hon'ble Court of the Principal District & Sessions Judge, Ahmedabad, designated as the Special Court under the Prevention of Money Laundering Act, 2002 (PMLA), on May 6, 2026, and received by the company on May 7, 2026. This development clears the path for the release of fixed assets worth approximately Rs 1000+ Cr and receivables aggregating to Rs 900+ Cr, which had been under embargo since 2018.

Background and Legal Proceedings

The PMLA case was initiated by the Directorate of Enforcement pursuant to an FIR registered by the Central Bureau of Investigation (RC No. 0292018A2006 dated March 26, 2018). The proceedings pertained to offences under Section 3 and punishable under Section 4 of the PMLA Act, 2002. As a result, substantial fixed and current assets of the company, along with those of its subsidiary Diamond Power Transformers Limited, had been attached, significantly impacting operational and financial flexibility for several years. Earlier, the Hon'ble Gujarat High Court had quashed and set aside the relevant proceedings and actions, and allowed the discharge of the company from prosecution initiated under CBI/ED proceedings in PMLA Case nos. 5 of 2021, 21 of 2018, and CBI-ACB Case No. 3/2020. With the present order of the Trial Court discharging the company as an accused in PMLA Case No. 2/2024, the company believes that a significant overhang on its operations and financial position now stands resolved.

Impact on Operations and Future Growth

The company confirmed that no proceedings are now pending against it under the PMLA Act, 2002. Following the takeover by new management under the Insolvency and Bankruptcy Code (IBC), the company had approached judicial forums for remedies. The discharge is expected to enable the leveraging of the fixed asset base for raising working capital and the realisation of outstanding pre-NCLT receivables. The company has made a remarkable turnaround supported by fund infusion by the Promoters, and these developments are expected to result in acceleration of operational expansion and execution capabilities, as well as enhanced confidence amongst lenders, customers, vendors, and institutional stakeholders.

Management anticipates that the infusion of fund-based and non-fund-based working capital limits will significantly accelerate the utilisation of presently highly under-utilised manufacturing capacities across various plants and business divisions. This will also pave the way for bank guarantee limits to participate in various business opportunities with National, State, and International Utilities. In addition, the company plans to expedite balancing equipment projects, debottlenecking initiatives, modernization programs, and expansion of ancillary infrastructure to enable higher production efficiencies and support future growth opportunities. The present development further reinforces the "clean slate" principle available to successful resolution applicants under the IBC and provides strong momentum for the next phase of growth.

With over five decades of presence in the power transmission and distribution sector, Diamond Power Infrastructure Limited continues to focus on strengthening its manufacturing capabilities across Power Cables and conductors, and remains committed towards long-term value creation for all stakeholders.

Regulatory Disclosure

The intimation to the stock exchanges was signed by Diksha Sharma, Company Secretary, on May 8, 2026. The company clarified that the discharge does not involve any settlement, and no compensation or penalty has been paid. The matter does not pertain to any key management personnel, promoter, or ultimate person in control.

Diamond Power Infrastructure Limited has formally disclosed to BSE and NSE that it does not qualify as a Large Corporate under the SEBI Master Circular framework as of March 31, 2026. The company submitted its initial disclosure on April 30, 2026, in compliance with SEBI Master Circular No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025, which governs fund raising through debt securities by large entities.

Official Disclosure Details

The disclosure was submitted to both BSE (Scrip Code: 522163) and NSE (Symbol: DIACABS) with comprehensive documentation. The company confirmed that it does not fall under the Large Corporate category as defined under the SEBI Master Circular framework. The official communication was digitally signed by Company Secretary Diksha Sharma and Chief Financial Officer Samir Naik, providing complete transparency regarding the company's regulatory classification status.

Key Financial Parameters

The company's disclosure revealed important financial parameters that determine its classification status under the SEBI framework:

Regulatory Compliance Framework

The disclosure was made pursuant to SEBI regulations that require entities to confirm their status regarding Large Corporate classification. Companies falling under the Large Corporate framework face specific compliance requirements for debt security issuances and ongoing disclosures. Diamond Power Infrastructure Limited's confirmation indicates it remains outside this regulatory framework based on the prescribed criteria established under the SEBI Master Circular.

Executive Confirmation

The disclosure document included contact details and digital signatures from key executives. Company Secretary Diksha Sharma (Tel: +919691394241, Email: cs@dicabs.com ) and Chief Financial Officer Samir Naik (Tel: +919930370690, Email: cs@dicabs.com ) both digitally signed the document on April 30, 2026. Their formal confirmation ensures compliance with SEBI requirements for executive accountability in regulatory disclosures.

Market Implications

By confirming its non-Large Corporate status, Diamond Power Infrastructure Limited clarifies its regulatory position for stakeholders and market participants. This classification affects the company's compliance obligations, particularly regarding debt security issuances and related disclosure requirements under SEBI frameworks. The formal disclosure provides clarity to investors and regulatory authorities about the company's current status under the Large Corporate framework, ensuring transparency in its regulatory compliance approach.