India

ED Arrests Three In ₹80 Crore Taksheel Solutions IPO Scam Under PMLA

The Enforcement Directorate (ED) has made significant arrests in the ₹80 crore Taksheel Solutions IPO fraud case. On October 11, the ED arrested Nirmal Kotecha, Pavan Kuchana, and Kishore Tapadia under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. They were subsequently presented before the court of MSJ, Nampally, Hyderabad, on October 12, where the court granted them judicial custody until October 25.

Notably, Nirmal Kotecha and Pavan Kuchana currently reside in the Republic of Vanuatu and the US, respectively, as per the enforcement agency’s information.

Taksheel Solutions IPO scam

The Taksheel Solutions IPO scam involves a SEBI investigation that uncovered a deliberate strategy by the company’s promoters to inflate the company’s revenue for the purpose of issuing the IPO and subsequently diverting and siphoning off the IPO proceeds. SEBI found that the company had withheld crucial information and presented factually incorrect statements in its IPO prospectus, which misled the public.

According to the ED’s investigation, Pavan Kuchana, Nirmal Kotecha, and Kishore Tapadia devised a meticulously planned strategy to inflate M/s Taksheel Solutions Limited’s revenue for the IPO and then divert and siphon off the IPO proceeds. Nirmal Kotecha arranged Inter-Corporate Deposits (ICDs) of ₹34.50 Crore to M/s Taksheel Solutions Ltd to facilitate the IPO. These funds were routed through US-based entities owned by Pavan Kuchana, involving circular transactions with Taksheel Solutions Ltd.

Prior to the IPO’s launch, the ICDs were repaid from the IPO proceeds. Additionally, out of the IPO proceeds of ₹80.50 crore, ₹34.50 crore was diverted to US-based entities of Pavan Kuchana, ostensibly for services rendered. Furthermore, an additional ₹30.50 crore was transferred to entities in Singapore and Hong Kong under the control of Nirmal Kotecha.

Priyanka Rai

Recent Posts

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

10 hours ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

10 hours ago

Chhattisgarh: Seven Maoists Killed In Indravati National Park Operation

Five Maoists were killed in two separate encounters with security forces in Chhattisgarh’s Bijapur district,…

11 hours ago

Carney Invites Modi To G7 Summit, Highlights India’s Global Supply Chain Role

Canadian Prime Minister Mark Carney said the most populous country, with the fifth-largest economy, must…

11 hours ago

RBI Frontloads Rate Cuts To Boost Growth Amid Low Inflation: Crisil

The Reserve Bank of India (RBI) has frontloaded its rate cuts to support economic growth,…

12 hours ago

PM Modi Urges Global Action On Coastal Resilience At Nice Summit

PM Narendra Modi on Saturday called for urgent global action to build infrastructure that can…

12 hours ago