CHENNAI: The Enforcement Directorate (ED) on Friday said it has arrested three persons under money laundering act for the alleged irregularities in Taksheel Solutions public issue (IPO). ED said it has arrested Nirmal Kotecha, Pavan Kuchana and Kishore Tapadia under the provisions of the Prevention of Money Laundering Act (PMLA) and were placed under judicial custody till October 25 by the Metropolitan Sessions Court at Nampally, Hyderabad on Thursday.
They are accused of formulating a carefully planned strategy to inflate the revenue of Taksheel Solutions for issuing IPO and for subsequently diverting and siphoning off the issue proceeds. Further investigation is under progress.
According to the department’s release, to facilitate the IPO, Nirmal Kotecha arranged Inter-Corporate Deposits (ICDs) of Rs 34.50 crore to Taksheel Solutions Limited. Circular transactions were done with the company before the IPO, which resulted in incremental revenue and corresponding inflation of profitability, it added.