Oswal Greentech Faces Major Financial Blow: ₹14.58 Crore Fraud Unearthed

Oswal Greentech Limited has reported a significant financial setback for the financial year ending March 31, 2026, disclosing a net loss of ₹62.41 crore alongside an alleged fraud of ₹14.58 crore involving a former authorised representative.

The latest audited results have raised fresh concerns among investors over asset recoverability, internal controls, and ongoing legal disputes affecting the company’s financial stability.

Sharp Financial Reversal Driven by Heavy Provisions

The company’s Board of Directors approved the audited financial statements on May 26, revealing a steep reversal from the previous year’s net profit of ₹8.53 crore.

Despite a marginal rise in revenue from operations—₹36.80 crore in FY26 compared to ₹35.25 crore in FY25—the company’s bottom line was severely impacted by exceptional provisions amounting to ₹101.22 crore. These provisions were primarily made against doubtful inter-corporate deposits and real estate advances.

Total income for FY26 stood at ₹105.49 crore, up from ₹92.72 crore in the previous financial year, but failed to offset the heavy adjustments.

Statutory auditors M/s Mehta Chokshi & Shah LLP issued a modified opinion, citing the absence of confirmations for inter-corporate deposits and real estate advances worth ₹1,226.76 crore. The auditors noted limitations in independently verifying these balances or assessing additional provisioning requirements.

₹14.58 Crore Alleged Fraud in Land Transaction Case

The company also disclosed an alleged fraud linked to a proposed land deal in Rishra village, West Bengal. According to the filing, former authorised representative Vishnu Prasad Muddana allegedly engaged in unauthorised actions even after his mandate had been terminated.

Oswal Greentech estimates the financial impact of the alleged fraud at ₹14.58 crore. The matter has been escalated for legal action, with the company seeking the registration of an FIR at Serampore Police Station.

Officials also alleged that the individual previously served as Chief Financial Officer of Oswal Agro Mills Limited between January and July 2025 and was involved in misrepresentation and unauthorised communications related to the disputed transaction.

Arbitration Dispute Adds Further Pressure

In addition to the fraud allegations, the company is facing a major arbitration dispute over interest on inter-corporate deposits. An arbitration award of ₹97.17 crore was passed against claims totaling ₹472.12 crore, resulting in a shortfall of ₹374.95 crore. Oswal Greentech has challenged the award before the Delhi High Court.

The ongoing legal battle, combined with disputed financial recoveries, has added further uncertainty to the company’s outlook.

Investor Concerns Over Governance and Financial Controls

During the January–March 2026 quarter, the company reported a net loss of ₹83.15 crore, largely driven by the same exceptional provisioning cycle.

Market analysts suggest the developments highlight broader concerns around governance standards, inter-corporate lending practices, and risk management within listed companies. Large provisioning levels, they note, often indicate uncertainty regarding asset recovery.

While the company maintains it is pursuing legal remedies and strengthening internal controls, investor sentiment has remained cautious amid continued volatility.

Outlook Remains Uncertain Amid Legal Challenges

Oswal Greentech’s stock performance has shown mixed long-term trends but has faced notable pressure in recent months due to governance concerns and financial irregularities.

The company has stated it is actively pursuing recovery actions and compliance improvements. However, ongoing litigation, arbitration disputes, and fraud allegations are expected to remain key risk factors in the near term.