ED attaches assets worth Rs 12.11 crores in Taksheel Solutions IPO scam case
To facilitate the issue of IPO, Nirmal Kotecha arranged for ICDs of Rs 34.50 crores to Taksheel Solutions
By Newsmeter Network Published on 11 Dec 2023 1:59 PM GMT
Hyderabad: The sleuths of the Directorate of Enforcement (ED) attached movable and immovable properties to the tune of Rs 12.11 crores belonging to Nirmal Kotecha, Pavan Kuchana and Kishore Tapadia in the case of the Initial Public Offer (IPO) scam of Taksheel Solutions Limited, Hyderabad.
The ED investigation revealed that the three accused formulated a planned strategy to inflate the revenue of Taksheel Solutions Limited for issuing an IPO to subsequently divert and siphon off the IPO proceeds.
How the scam was executed
To facilitate the issue of IPO, Nirmal Kotecha arranged for Inter-Corporate Deposits (ICDs) of Rs 34.50 crores to Taksheel Solutions. The said funds were rotated through US-based entities belonging to Pavan Kuchana and circular transactions were done with Taksheel Solutions before the IPO. This resulted in incremental revenue and corresponding inflation of profitability. After the IPO was issued, the ICDs were repaid from the IPO proceeds.
The ED investigation further revealed that out of the IPO proceeds of Rs 80.5 crores, Rs 34.5 crores 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 30.15 crores was further transferred to Singapore/Hong Kong-based entities under the control of Nirmal Kotecha. Out of the IPO proceeds, Rs 23 crores 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.
Proceeds of crime amounting to Rs 18 crores were transferred from Taksheel Solutions to various individuals/entities on the pretext of IPO-related expenses, payments to vendors, STPI development expenses, salaries, etc.
Earlier, the ED had arrested Nirmal Kotecha, Pavan Kumar Kuchana and Kishore Tapadia. Nirmal Kotecha and Kishore Tapadia were granted bail by the Telangana High Court on December 6, 2023, and Pavan Kuchana is still in judicial custody.
