India News | Bank Loan Fraud: ED Conducts Raids in Bengaluru
Get latest articles and stories on India at LatestLY. 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.
New Delhi, Oct 17 (PTI) 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.
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"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.
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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".
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)