The Enforcement Directorate on Monday searched the Bengaluru premises of Sequoia Capital India, the country’s largest venture capital investor, in connection with an investigation against the Chennai-based Vasan Healthcare group.
Sequoia Capital had earlier subscribed Rs.100-crore worth of Vasan Healthcare preference shares. However, in 2010-11, it bought 30,000 shares of Vasan Healthcare at Rs.7,500 per unit from Advantage Strategic Consulting Pvt. Ltd, which is also under the Enforcement Directorate scanner for suspected foreign exchange violations.
Sequoia Capital India managing director V.T. Bharadwaj was expected to attend an industry event in Mumbai on Monday, but he could not be reached by the organisers and his mobile phone was found switched off. Confirming that the ED searched its premises, sources in Sequoia Capital India said the firm was cooperating with the investigations and that other investors in Vasan Healthcare were being contacted by the enforcement agency.
The ED is investigating whether Advantage Strategic, which made over Rs. 22 crore by selling Vasan Healthcare shares to Sequoia Capital India, had acquired 1.5 lakh shares of the same group at a throwaway price of Rs.100 per unit and if so, how. About 66 per cent shares in Advantage Strategic were earlier bought by Ausbridge Holdings, in which former Finance Minister P. Chidambaram’s son Karti was a director, allegedly till early 2012.
The ED, along with the Income Tax Department, had conducted searches at Vasan Healthcare and Advantage Strategic last December. This triggered a sharp reaction from Mr. Karti Chidambaram and Mr. P. Chidambaram. The latter accused the Centre of targeting his son’s friends, stating that they carried on their own businesses and had nothing to do with politics.
In connection with the probe into Advantage Strategic, the agency later searched the premises of Chess Global Advisory Services Pvt. Ltd. in Chennai, in which Mr. Karti Chidambaram is a director.
Mr. Bharadwaj had been a member of the board of directors of Vasan Healthcare till he resigned in November last year.
(With inputs from Yuthika Bhargava &Piyush Pandey)
