The Central Bureau of Investigation (CBI) in Bengaluru has registered a case against medical devices firm Opto Circuits India Limited (OCIL), under charges of criminal conspiracy, cheating and forgery allegedly causing State Bank of India a loss of Rs 354 crore.
M Ramakrishna Shenoy, assistant general manager of State Bank of India (SBI), stressed assets management branch, said in his complaint filed Monday that OCIL cheated the bank between 2011 and 2016.
According to the FIR accessed by the Indianexpress.com, a forensic audit conducted by the SBI revealed the firm had diverted the loan amount availed from the bank. During 2010-11, the company acquired three entities at a cost of nearly Rs 460 crore without the lender’s prior permission.
OCIL, a 100% export-oriented unit, is a manufacturer of invasive and non-invasive medical devices. The firm obtained cash credit facilities from SBI’s industrial finance branch in Bengaluru. It turned into a non-performing asset (NPA) on February 27, 2014. The principal outstanding amount as on June 30, 2019, was estimated at Rs 155.45 crore.
According to the FIR, the accused forged and falsified their financial statements to show a healthy balance sheet. The falsification of accounts was done to facilitate diversion of funds through buyers and suppliers in UAE, Malaysia, Singapore, and Labuan, the FIR read.
Indianexpress.com contacted OCIL about the allegations, and their emailed response read: “We deny the allegation of cheating statement of SBI to an extent of Rs.354.32 Crores by diverting the Cash Credit Loan. It is contradictory to the information of outstanding amount of Rs.155.44 Crores.”
“We are listed Company and Financial Statements are reviewed every quarter and Statutory Auditors have certified the genuineness of the state of affairs of the Company there is no such comment of diverting short term working capital funds for the invested amount of Rs.732.73 Crores. All the investments and foreign outward remittances to the related parties have been made through the designated Authorized Dealer Banks and also reported to the Reserve Bank of India under the appropriate FEMA guidelines. CBI team has visited Opto Circuits (India) Limited office on 5th November 2019 and collected the details necessary for the investigation. As against outstanding liability of Rs.166.50 Crores to SBI, a one time settlement proposal for Rs. 83 Crores is almost in the final stages of agreement; a 15% upfront money of Rs 12.5 Crores has been paid as of 28th February 2019. Recently, after the meeting of the senior executives at corporate centre Mumbai, SBI has called for a revised repayment schedule and terms of settlement and the company is in the process of furnishing the details called for and resubmitting the settlement proposal for approval by the SBI authorities, which is clear proof of SBI continue to deal with Company, irrespective of the allegations in the complaint,” the statement read.