Taksheel solutions IPO scam: The Enforcement Directorate, on Friday, arrested three people under the Prevention of Money Laundering Act (PMLA) in ₹80 crore IPO fraud case.
The ED arrested Nirmal Kotecha, Pavan Kuchana and Kishore Tapadia under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 on October 11. Later, these three accused were produced before the court of MSJ, Nampally, Hyderabad on October 12. Later, the court granted judicial custody to them till October 25, ED said on Friday.
Presently, Nirmal Kotecha and Pavan Kuchana are the residents of the Republic of Vanuatu and the US, respectively, the enforcement agency posted on X.
“The arrested accused persons are produced before the Hon’ble Court of MSJ, Nampally, Hyderabad on 12/10/2023 and the Hon’ble Court has granted judicial custody till 25/10/2023,” ED said in its post on X.
About Taksheel Solutions IPO scam
It was found in the SEBI investigation that promoters of Taksheel Solutions meticulously planned strategy to inflate the revenue of the company for issuing IPO and for subsequently diverting and siphoning off the IPO proceeds
The company also had suppressed vital information and presented factually incorrect statements in its IPO prospectus swhich was misleading for the public, found SEBI in its probe.
“ED investigation revealed that Pavan Kuchana, Nirmal Kotecha and Kishore Tapadia formulated a meticulously planned strategy to inflate the revenue of M/s Taksheel Solutions Limited for issuing IPO and for subsequently diverting and siphoning off the IPO proceeds. To facilitate the issue of IPO, Nirmal Kotecha arranged Inter-Corporate Deposits (ICDs) of Rs. 34.50 Crore to M/s Taksheel Solutions Ltd,” ED said.
According to the investigation agency, the said funds were rotated through US-based entities belonging to Pavan Kuchana and circular transactions were also done with Taksheel Solutions Ltd.
Before the launch of IPO, the ICDs were repaid from the IPO proceeds. It was also revealed that out of the IPO proceeds of 80.50 crore, an amount of ₹34.50 crore was diverted and siphoned off to US-based entities of Pavan Kuchana. The transaction was made on the pretext of payment for the supply of services. In addition to this, an extra amount of Es 30.50 crore was further transferred to Singapore and Hong Kong-based entities under the control of Nirmal Kotecha.