Hyderabad: The Directorate of Enforcement (ED), arrested three persons for a scam involving the funds raised via the initial public offering (IPO) of Taksheel Solutions Limited. Of the three, Nirmal Kotecha is a resident of the Republic of Vanuatu, Pavan Kuchana is based in the USA and Kishore Tapadia is an Indian national.
The ED produced them in a court here on Thursday in a case under the Prevention of Money Laundering Act (PMLA), 2002.
The ED officials initiated the investigation based on a complaint filed by the Securities and Exchange Board of India stating that Taksheel Solutions, its promoters and directors, and others had committed irregularities concerning the IPO through which it had raised Rs 80.5 crore.
The ED said the trio inflated the revenue figures of Taksheel Solutions for issuing an IPO and subsequently diverting and siphoning off the proceeds.
The ED said Kotecha arranged inter-corporate deposits (ICDs) of Rs 34.5 crore to Taksheel Solutions. The funds were rotated through US-based entities belonging to Kuchana. Circular transactions were done with Taksheel Solutions Ltd. before the IPO which resulted in incremental revenue and corresponding inflation of profitability. Subsequently, the ICDs were repaid to the US-based entities from the IPO proceeds.
Of this sum, Rs 30.50 crore was transferred to Singapore and Hong Kong-based entities under the control of Kotecha. Another Rs 23 crore was transferred to Indian entities in the guise of the purchase of software products and eventually transferred to Kotecha’s entities based in Hong Kong and Dubai.
Another Rs 18 crore was transferred from Taksheel Solutions to various individuals and entities on the pretext of IPO-related expenses, payments to vendors, STPI development expenses, and salaries.
