Vasan Healthcare case: ED raids Sequoia Capital office in Bangalore
The Aircel-Maxis deal is being investigated by ED and the income tax department for alleged violation of foreign direct investment rulesbusiness Updated: Apr 20, 2016 11:00 IST
The Enforcement Directorate on Monday evening raided the Bangalore offices of start-up investor Sequoia Capital in connection with minority investment in Chennai-based Vasan Healthcare.
Sequoia confirmed the raid in three Twitter posts on Tuesday morning. The Singapore-based start-up investor said: “Yesterday’s ED visit is part of the ongoing investigation into Vasan where Sequoia India is a minority investor along with others. Sequoia has adopted a policy of full compliance with that investigation and has dutifully responded to governmental inquiries recd to date. We continue to co-operate with the ongoing investigation on Vasan.”
The exact nature of investigation conducted by the ED could not be ascertained. ED officers in Delhi and Bengaluru could not be reached for comments.
Reports in the online media had linked the raid to the alleged violation of foreign exchange rules in the Aircel-Maxis deal. Karti Chidambaram, son of former finance minister P Chidambaram, is also alleged to have had financial interest in the Aircel-Maxis deal.
When contacted, Karti Chidambaram said: “I have no comments on an issue or entities to which I have no connection none whatsoever.”
Sequoia, too, distanced itself from the Aircel-Maxis deal. In a more detailed response issued later in the day, the company said: “Contrary to media reports, Sequoia Capital India has absolutely no association with companies like Aircel or Maxis. Our only connection to the ED visit is that Sequoia Capital India is a minority investor in Vasan, which is one out of the 100+ investments made in India over the last 10 years.”