Independent director accuses promoters of Rs 600-crore scam in listed optic fibre maker
An independent director of a Delhi-based maker of optic fibers has written to the board and the finance ministry accusing its promoters of siphoning off at least Rs 600 crore through multiple related party transactions, faking investments in a byzantine collection of shell companies, over-invoicing overseas purchases and fudging company accounts over several years.
The actions of Kailash S Choudhari and co-promoter Popatlal Fulchand Sundesha, the promoters of Aksh Optifibre Ltd, caused losses to shareholders and bankers, according to a series of letters written by independent director Arvind Gupta.
The revelations by Gupta, who is credited with exposing several corporate scams, notably the alleged ICICI-Videocon quid-pro-quo loan deal involving banker Chanda Kochhar, is arguably the first instance in which an independent director has attempted to blow the lid off a financial scam in a listed Indian company.
“Related party private companies have been indiscriminately used for over-invoicing, plant, and machinery, procurement of cheap raw material, over billing other inputs and services to Aksh Optifibre in collusion with the chief financial partner, managing director and other directors on the board,” Gupta told.
Aksh Optifibre manufactures optic fiber/optic fiber cables (OF/OFC) and optics lenses. The promoters own 27.95 percent of the company as on March 2020 while the public holds 72.05 percent.