Sequoia’s Bangalore Office Raided By Enforcement Directorate

Sequoia India’s Bangalore’ Office was raided on Monday night by officials from the Enforcement Directorate. The operation is in connection with the Airtel-Maxis scam, in which Karti Chidambaram, the son of former Union home and finance Minister P Chidambaram, is alleged to have used Vasan Healthcare to launder black money. Sequoia Capital was an investor in Vasan Healthcare. Sequoia India has confirmed the ED action and said it’s cooperating with authorities.



The Hindu reported that Sequoia Capital had earlier subscribed Rs.100-crore worth of Vasan Healthcare preference shares. However, in 2010-11, it bought 30,000 shares of Vasan Healthcare at Rs.7,500 per unit from Advantage Strategic Consulting Pvt. Ltd, which is also under the Enforcement Directorate scanner for suspected foreign exchange violations.

The ED is investigating whether Advantage Strategic, which made over Rs. 22 crore by selling Vasan Healthcare shares to Sequoia Capital India, had acquired 1.5 lakh shares of the same group at a throwaway price of Rs.100 per unit and if so, how. About 66 per cent shares in Advantage Strategic were earlier bought by Ausbridge Holdings, in which former Finance Minister P. Chidambaram’s son Karti was a director, allegedly till early 2012.