ED raids premises of Opto Circuits in Rs 883-crore bank fraud case
Directorate of Enforcement (ED) has carried out search operations on 17 October 2023 under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) at five locations of Bengaluru (Karnataka) in the case of Opto Circuits India Ltd and related persons in a bank fraud case.
ED initiated investigation on the basis of FIR registered by the CBI, BS&FC, Bengaluru City under various sections of IPC, against s Opto Circuits India Ltd and its promoters/directors for misappropriation and diversion of loan from a consortium of eight banks which has outstanding liabilities to the tune of Rs. 883.03 Crore.
Opto Circuits India is currently undergoing corporate insolvency resolution process.
ED investigation revealed that the promoters/directors of Opto Circuits India Ltd has forged and fabricated the books of accounts of the company to avail loan from the banks. Further, the loan amount was diverted in the form of investment in subsidiaries in India and foreign countries. The directors/promoters of Opto Circuits India Ltd also forged and falsified the financial statements of the company by showing a healthy position on balance sheet by putting huge amount of trade receivables which were not backed by the commensurate credit-worthiness of the buyers.
During the search operations, incriminating documents related to acquisition of movable and immovable properties, diversion of funds to foreign based subsidiaries, records and Foreign Currency/Financial Instruments were found and seized. Further investigation is under progress.
The CIRP against Opto Circuits India Ltd was started by ICICI Bank in November 2022 after the company defaulted on a payment of Rs 107 crore. Creditors have submitted claims of over Rs 2,500 crore against Opto Circuits India Ltd.
Opto Circuits India Ltd (OCIL) is a medical device Company headquartered out of Bengaluru, India. The company stock is publicly traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Opto Circuits is into designing, developing, manufacturing, marketing and distributing a range of medical products. It is a vertically integrated group that specializes in primary, acute and critical care products for the global markets.
Opto’s Group companies such as Cardiac Science , Criticare, Eurocor, Mediaid, AMDL and Unetixs Vascular are leaders in emergency cardiac care equipment, vital signs monitors, sensing technologies and vascular treatments.
OCIL run facilities and offices in North America, Europe and Asia. The Company’s USFDA listed and CE marked products are marketed in more than 150 countries and sold through direct and indirect sales channels across many emerging and developed economies.
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