Bank loan fraud: ED conducts raids in Bengaluru
In a statement, the Enforcement Directorate said it undertook the operation and covered five locations as part of a Prevention of Money Laundering Act (PMLA) probe against Opto Circuits India Limited
New Delhi: The Enforcement Directorate (ED) raided multiple locations in Bengaluru on Tuesday as part of a money-laundering probe linked to a bank-loan fraud case.
In a statement, the federal agency said it undertook the operation and covered five locations as part of a Prevention of Money Laundering Act (PMLA) probe against Opto Circuits India Limited.
“Incriminating documents related to acquisition of movable and immovable properties, diversion of funds to foreign-based subsidiaries, records and foreign currency/financial instruments were seized during the searches,” it said.
The money-laundering case stems from an FIR lodged by the Central Bureau of Investigation (CBI) that alleged that Opto Circuits India Limited and its promoters and directors “misappropriated and diverted” loan funds obtained from a consortium of eight banks, which has outstanding liabilities to the tune of Rs 883.03 crore.
The ED alleged that the company “forged and falsified the financial statements by showing a healthy position on the balance sheet and by putting a huge amount of trade receivables which were not backed by the commensurate credit-worthiness of the buyers”.
