The Enforcement Directorate (ED) on Friday searched multiple locations as part of its probe into an alleged ₹1,626.74 crore bank loan fraud involving Chandigarh-based Parabolic Drugs Limited and its directors, including Vineet Gupta and Pranav Gupta who are founding members of Ashoka University.
The searches were conducted at 17 places in New Delhi, Chandigarh, Panchkula and Ambala of Haryana, and Mumbai.
The ED probe is based on a case registered by the Central Bureau of Investigation in December 2021, alleging that Parabolic Drugs and 11 others cheated a consortium of 12 banks to the tune of ₹1,626.74 crore. Among the named accused are the company’s managing director, Mr. Pranav and its director, Mr. Vineet.
After registering the case, the CBI had also raided 12 locations in Chandigarh, Panchkula, Ludhiana, Faridabad and New Delhi.
The company manufactures bulk drugs, drugs intermediaries and its units are located in Haryana and Punjab. As alleged, from April 18, 2012, it had not discharged its liabilities towards the suppliers despite that it had got issued Letters of Credit (LCs) for the same. Consequently, the LCs had started getting devolved.
The CBI case alleged that the company continued to default on repayment of debts. It had allegedly availed itself of bank finance by overstating the value of primary security. During internal inquiries, the lending banks detected several alleged irregularities, including diversion of the borrowed funds through fake purchases of assets/machinery and false transactions with related or non-existent entities.
Ashoka University, through a statement, said that the ED had sought information related to the case of Parabolic Drugs, in which two of its founders, Mr. Vineet and Mr. Pranav, were directors. The university said it had no past or current relationship with Parabolic Drugs and that any attempt to create a link was without any basis and misleading.
“Vineet and Pranav Gupta are two among the more than 200 founders and donors of Ashoka University, who have contributed to Ashoka’s creation and growth in their personal philanthropic capacity and whose individual businesses have absolutely no bearing on the university,” it said.
The institution said it was “India’s first university based on the principle of collective philanthropy, built on the finest global best practices of institution and university governance and no individual, family or corporate group owns or controls it. It is managed by an autonomous Board of Trustees and an independent Governing Body, both of which adhere to impeccable ethical standards”.
(with inputs from Satvika)
