By the terms of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has temporarily attached properties, both immovable and mobile, valued at Rs. 12.11 crore, belonging to Nirmal Kotecha, Pavan Kuchana, and Kishore Tapadia in the context of an initial public offering (IPO) developed by Hyderabad-based M/s Taksheel Solutions Limited.
The Securities and Exchange Board of India (SEBI) filed a complaint under the provisions of the SEBI Act, 1992, against M/s Taksheel Solutions Limited, its promoters/directors, and others regarding irregularities concerning the initial public offering (IPO) of 55,00,000 shares for Rs. 10 each. Through this sale, M/s Taksheel was able to raise Rs. 80.50 crore, with the issue price of the shares set at Rs. 150. Based on this, the ED opened an investigation.
According to the ED probe, Pavan Kuchana, Nirmal Kotecha, and Kishore Tapadia devised a calculated plan to exaggerate M/s Taksheel Solutions Limited’s income to issue an IPO and then divert and siphon off the IPO proceeds. To streamline the IPO process, Nirmal Kotecha organized for M/s Taksheel Solutions Ltd. to receive Inter-Corporate Deposits (ICDs) totaling Rs. 34.50 crore. Before the IPO, the aforementioned funds were raised through US-based companies owned by Pavan Kuchana and through circular transactions with M/s Taksheel Solutions Ltd., which increased revenue and profitability accordingly. After the IPO, the ICDs received reimbursement from the IPO proceeds.
Further investigation by the ED showed that, out of the Rs. 80.50 crore IPO proceeds, Rs. 34.50 crore was embezzled and paid to corporations in the United States that Pavan Kuchana owned under the guise of payment for services rendered. An additional amount of Rs. 30.15 crore was transferred from these US-based organizations to organizations headquartered in Singapore or Hong Kong and managed by Nirmal Kotecha.
An additional sum of Rs. 23 crore was moved from the IPO proceeds to Indian organizations under the pretense of buying software products. This money was later transferred to Nirmal Kotecha’s entities based in Dubai and Hong Kong. Rs. 18 crore in criminal proceeds were transferred from M/s Taksheel Solutions Ltd. to several people and organizations under the guise of IPO-related costs, vendor payments, STPI development costs, salary, etc. All three of the accused—Nirmal Kotecha, Pavan Kumar Kuchana, and Kishore Tapadia—had previously been taken into custody by the ED. The Telangana High Court granted bail to Nirmal Kotecha and Kishore Tapadia.
