Enforcement Directorate (ED)
Hyderabad: The Special PMLA Court here took cognisance of the Directorate of Enforcement (ED) prosecution complaint against Nirmal Kotecha, Pavan Kuchana and Kishore Tapadia in relation to the alleged irregularities in handling Rs 80.5 crore raised from the stock market by Taksheel Solutions Limited. The ED had earlier attached their assets worth Rs 12.11 crore.
The ED initiated investigation on the basis of complaint filed by the Securities and Exchange Board of India (Sebi), and found that the trio had inflated the revenue of Taksheel Solutions for issuing the initial public offering (IPO) in the stock market. They subsequently diverted and siphoned off the IPO proceeds.
The ED said Kotecha arranged inter-corporate deposits (ICDs) to Taksheel Solutions Ltd. The funds were rotated through US-based entities belonging to Kuchana and circular transactions were done with the firm before the IPO. This resulted in incremental revenue and corresponding inflation of profitability. The ICDs were repaid from the IPO proceeds.
The ED said Rs 34.5 crore raised from IPO was siphoned off to Kuchana’s US-based entities on the pretext of payment for services. From these entities, a huge amount of money was transferred to those based in Singapore and Hong Kong under the control of Kotecha.
Another Rs 23 crore was transferred to Indian entities allegedly for software products and eventually transferred to Kotecha’s entities in Hong Kong and Dubai. Another Rs 18 crore was transferred to various individuals and entities on the pretext of IPO related expenses, payments to vendors, STPI development expenses, salaries.
The ED said Kotecha arranged inter-corporate deposits (ICDs) to Taksheel Solutions Ltd. The funds were rotated through US-based entities belonging to Kuchana and circular transactions were done with the firm before the IPO. This resulted in incremental revenue and corresponding inflation of profitability. The ICDs were repaid from the IPO proceeds.
The ED said Rs 34.5 crore raised from IPO was siphoned off to Kuchana’s US-based entities on the pretext of payment for services. From these entities, a huge amount of money was transferred to those based in Singapore and Hong Kong under the control of Kotecha.
Another Rs 23 crore was transferred to Indian entities allegedly for software products and eventually transferred to Kotecha’s entities in Hong Kong and Dubai. Another Rs 18 crore was transferred to various individuals and entities on the pretext of IPO related expenses, payments to vendors, STPI development expenses, salaries.
( Source : Deccan Chronicle )
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