According to the reports published in the leading Indian News papers, enforcement agency which investigates foreign-exchange violations, is examining why the Silicon Valley venture firm bought shares of a health care start-up at a premium from a company allegedly controlled by Karti P. Chidambaram, the son of former Finance Minister P. Chidambaram.
As per the agencies, baffling price was paid by Seqouia is incongruent with what its own auditors, Suresh and Company, estimated. They said the value of a Vasan share was Rs. 110, but just over a week later, the venture capital firm picked up those same shares for a massive premium.
These shares of Vasan Healthcare, sold to Sequoia for INR 7500 per unit, were allegedly acquired at a fairly low price. It is alleged that Advantage Strategic Consulting Services had acquired 1.5 lakh shares of Vasan Healthcare at throwaway price of close to INR 100 per unit.
With the huge profits it made, the company indirectly owned by Karti Chidambaram, Advantage Strategic Consulting Services, then sent its Singapore branch on a global shopping spree.