ED arrests promoters of Taksheel Solutions in Rs 80 Cr IPO fraud case
ED acted upon a complaint filed by Securities and Exchange Board of India against the promoters.
By Newsmeter Network Published on 13 Oct 2023 8:05 AM GMT
Hyderabad: Sleuths of Enforcement Directorate have arrested promoters of city based Taksheel Solutions Limited in a Rs 80.50 Crore fraud.
Nirmal Kotecha, Pavan Kuchana and Kishore Tapadia, three promoters are charged under provisions of the Prevention of Money Laundering Act (PMLA), in the case of Initial Public Offer (IPO) scam.
Nirmal Kotecha and Pavan Kuchana are presently residents of Republic of Vanuatu and USA respectively.
ED acted upon a complaint filed by Securities and Exchange Board of India against the promoters. A case was registered under 12(A) r/w 24 of the SEBI Act, with respect to IPO of 55,00,000 shares of Rs. 10 each for which issue price was fixed at Rs. 150 and with this M/s Taksheel raised Rs. 80.50 Crore.
Fraud
Probe found that Pavan Kuchana, Nirmal Kotecha and Kishore Tapadia planned to inflate the revenue of Taksheel Solutions Limited for issuing IPO and for subsequently diverting and siphoning off the IPO proceeds.
In order to facilitate the issue of IPO, Nirmal Kotecha arranged Inter-Corporate Deposits (ICDs) of Rs. 34.50 Crore to
Taksheel Solutions Ltd.
The said funds were rotated through US based entities belonging to Pavan Kuchana and circular transactions were done with Taksheel Solutions Ltd. Before the IPO which resulted in incremental revenue and corresponding inflation of profitability.
Subsequent to the IPO, the ICDs were repaid from the IPO proceeds, ED said.
Money Laundering
Out of the IPO proceeds of 80.50 Crore, an amount of Rs. 34.50 Crore was diverted and siphoned off to US based entities of Pavan Kuchana on the pretext of payment for supply of services.
From these US based entities, an amount of Rs. 30.50 Crore was further transferred to Singapore / Hong Kong based entities under the control of Nirmal Kotecha.
Out of the IPO proceeds, another amount of Rs. 23 Crore was transferred to Indian entities in the guise of purchase of software products and was eventually transferred to Nirmal Kotechaās entities based in Hong Kong and Dubai.
Later, proceeds of crime of Rs. 18 Crore were transferred from Taksheel Solutions Ltd various individuals / entities on the pretext of IPO related expenses, payments to vendors, STPI development expenses, salaries.
The three have been arrested and produced before the special court hearing PMLA cases.
