The Enforcement Directorate late on Monday night conducted raids at major venture capital firm Sequoia Capital’s Bengaluru office in connection with the Aircel-Maxis scam. The raids continued on Tuesday too.
ED sources claimed they found violations in FDI and money trail by former Finance Minister P Chidambaram’s son Karti-linked firms in 2009.
According to investigators, the multinational firm purchased 30,000 shares of Vasan Health Care Private limited from Karti controlled Advantage Strategic Consulting Private limited at highly inflated price in 2009.
Advantage got `7,500 per share premium from Sequoia for purchase of Vasan Health Care’s shares. This deal was nothing but dubious adjustment of money by showing inflated premium to the newly start up firm, said investigators.
Soon after this deal worth `23 crore, Sequoia invested `226 crore in Vasan Health Care, which violated all FDI and FEMA norms, they added. The Sequoia officials said the raids were part of the probe related to Vasan Health Care and they were only a minor stake holder in the controversial health sector firm, alleged to be linked Chidambaram’s family.
A few months ago, the ED and Income Tax team had conducted raids at Karti’s connected firms including Advantage Strategic Consulting. The probe team had unearthed massive investments and assets amassment of Karti linked firm in 14 countries. Advantage’s Singapore subsidy owns 88 acre farm in london, three luxury hotels in Sri lanka, properties and massive investments in Malaysia, Singapore and South Africa.
The 2G Court had already issued letter of Rogatory (lR) to Singapore for probing into money trail of Advantage in February. In Aircel-Maxis scam, the court had also sent lRs to london, Malaysia and Mauritius also upon ED’s request.