In the matter of M/s Opto Circuits India Ltd and linked parties in a bank fraud case, the Directorate of Enforcement (ED) conducted search operations on October 17, 2023, in five sites in Bengaluru, Karnataka, in accordance with the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
The CBI, BS&FC, Bengaluru City filed a formal complaint (FIR) under various sections of the Indian Penal Code against M/s Opto Circuits India Ltd and its promoters/directors for misappropriation and diversion of loans from a consortium of eight banks, with outstanding liabilities amounting to Rs. 883.03 Crore. Based on this, the ED opened an investigation.
The promoters and directors of M/s Opto Circuits India Ltd. faked and falsified the company’s books of accounts in order to get bank loans, according to an ED probe. Furthermore, the loan amount was misappropriated by investing it in foreign and Indian businesses.
Additionally, the promoters and directors of M/s Opto Circuits India Ltd. fabricated and forged the company’s financial accounts to reflect a strong balance sheet with a large number of trade receivables that were not supported by the buyers’ corresponding creditworthiness. M/s Opto Circuits India Ltd did this in a way that caused the banks to suffer a significant loss by misappropriating and diverting the loan facility.
Incriminating documentation about the purchase of real estate, including records, foreign currency and financial instruments, and the transfer of monies to overseas subsidiaries were discovered and confiscated during the search operations. Further research is now being conducted.
