Sequoia Capital’s Bengaluru office was raided by the Enforcement Directorate (ED) late on Monday night as part of an investigation regarding foul play in foreign exchange relating to Vasan Healthcare, a company in which the venture capital firm had invested.
This investigation comes as just one in a series of appraisals in the past several months undertaken by multiple government agencies including the Enforcement Directorate and the investigating arm of the Income Tax department, into numerous deals undertaken by Karti Chidambaram, son of former union home and finance minister P. Chidambaram. Apparently, Chidambaram misused the FDI policy and bought 30,000 shares at INR 7,500, violating foreign exchange norms.
Yesterday’s ED visit is part of the ongoing investigation into Vasan where Sequoia India is a minority investor along with others,
Sequoia has adopted a policy of full compliance with that investigation & has dutifully responded to governmental inquiries recd (sic) to date. We continue to co-operate with the ongoing investigation on Vasan,
We continue to co-operate with the ongoing investigation on Vasan,
Sequoai said in a series of tweets.
Other allegations include investigators claiming that they were examining FEMA violations of Rs 22.2 crore by Advantage Strategic Consultants Ltd (ASCL) and Vasan Healthcare, purportedly between 2008 and 2010. Also, Vasan seems to have sold nearly 1.5 lakh shares to Advantage at Rs 100 in 2008. These shares were purchased at Rs. 200 and the reason behind the 50 percent discount in the shares prices is yet to be determined.
1/3: Yesterday’s ED visit is part of the ongoing investigation into Vasan where Sequoia India is a minority investor along with others.
— Sequoia_India (@Sequoia_India) April 19, 2016
2/3:Sequoia has adopted a policy of full compliance with that investigation & has dutifully responded to governmental inquiries recd to date
— Sequoia_India (@Sequoia_India) April 19, 2016
3/3: . We continue to co-operate with the ongoing investigation on Vasan.
— Sequoia_India (@Sequoia_India) April 19, 2016
ED and CBI are snooping for evidence regarding the Aircel-Maxis deal. It is a part of the overall probe in the 2G scam case.
