The agencies –– CBI and ED –– claim that ASCPL was indirectly owned and controlled by Karti, a charge which the latter has vehemently and repeatedly denied.
NEW DELHI: At a time when payments received by Advantage Strategic Consultancy Private Limited (ASCPL) are being scrutinised by the Enforcement Directorate (ED), another probe involving ASCPL is nearing completion.
This involves alleged foreign exchange violations by Vasan Healthcare, a company in which Sequoia Capital had invested. Probe agencies have alleged that the payments received by ASCPL were “kickbacks” received on behalf of Karti Chidambaram, son of former finance minister P Chidambaram, for “managing” FIPB clearance by using his influence in the finance ministry.
The agencies –– CBI and ED –– claim that ASCPL was indirectly owned and controlled by Karti, a charge which the latter has vehemently and repeatedly denied.
In April 2016, ED sleuths had raided Sequoia’s office in Bengaluru as part of its investigation relating to foreign exchange violations pertaining to Vasan Healthcare.
Sources in the agency told ET that “adjudication proceedings” are on and that the special director (ED) who was presiding over the proceedings recently retired. “A new officer is being deputed for effective and speedy disposal of the matter,” said a senior official requesting anonymity. The officer quoted above added that the matter has reached the “final stage”.
The proceedings have been segregated into two parts. Noticee (parties) in the first part includes Sequoia Capital; Vasan Healthcare; AM Arun, founder of Vasan Healthcare, one of India’s leading eyecare hospital chains; Mira Arun and V Dwarkanathan (Arun’s father-in-law).
ADVERTISEMENT
Agency sources said the second part (of proceedings) involves ASCPL which is contesting its case against ED. The development assumes significance since payments received by ASCPL lie at the heart of the investigation of the probe agencies.
Agencies had earlier claimed to have unearthed documents during previous raids on firms linked to Karti Chidambaram that indicated that Sequoia Capital was allegedly “roped in” for misuse of the foreign direct investment policy.
ED was also examining alleged FEMA violations of Rs 22.2 crore by ASCPL and Vasan Healthcare, purportedly between 2008 and 2010.
ADVERTISEMENT
According to ED sources at the time, Vasan sold nearly 1.5 lakh shares to ASCPL at Rs 100 per share in 2008. Two years later, (2010), ASCPL sold 30,000 shares (a partial stake) of the 1.5 lakh shares to Sequoia Capital at Rs 7,500 per share. The raids conducted then were a fallout of the investigations by government agencies, including ED and the investigating arm of the Income Tax Department, into alleged deals undertaken by Karti.
A questionnaire sent to Sequoia failed to elicit response. Sequoia had earlier stated that it was a minority investor in Vasan Healthcare. Sequoia had said that it has adopted a policy of full compliance with that investigation and has responded to governmental inquiries received to date.
ADVERTISEMENT
ET sent a detailed questionnaire(s) to Vasan Healthcare and ASCPL seeking their response(s) but to no avail.
