Forex Trouble: Sequoia Capital Clarifies On Twitter After ED Raids Bengaluru Office
Allegations of foreign exchange violations against Venture firm Sequoia Capital.
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There are allegations of foreign exchange violations against Venture firm Sequoia Capital. The Enforcement Directorate raided Sequoia Capital's office in Bengaluru on Monday. The violations are allegedly related to Vasan Healthcare that runs Vasan Eye care centers.
While the news set off social media abuzz, Sequoia took to Twitter to clarify. In a message, the company said: "Sequoia has adopted a policy of full compliance with that investigation & has dutifully responded to governmental inquiries recd (sic) to date. We continue to co-operate with the ongoing investigation on Vasan.
It tweeted that it was a minority investor, along with others, in Vasan Healthcare.
Sequoia's purchase of 30,000 shares of Vasan Healthcare at Rs 7,500 per unit from Advantage Strategic Consulting Pvt Ltd in 2010-11 is under ED scanner for suspected foreign exchange violations, a report in The HIndu said.
Sequoia has been an investor in Vasan Healthcare since February 2009. This is not the first time Sequoia has faced trouble with the ED. In December last year, there were reports that the agencies have claimed to have unearthed documents during previous raids on firms linked to P Chidambaram's son Karti that indicated that Sequoia Capital, was allegedly partnered for misuse of the foreign direct investment policy.