ED's 11 Posers to Vasan Health Care, Karti Conduit in Multi-crore Deal
By Express News Service
Published: 19th September 2015 03:53 AM
Last Updated: 19th September 2015 11:16 AM
![Image Courtesy: Rameshng/Wikimedia Commons]()
Image Courtesy: Rameshng/Wikimedia Commons
CHENNAI: The Enforcement Directorate (ED) appears to have finally woken up to the need for a probe into the surreptitious manner in which huge amounts, running into crores of rupees, flowed into Vasan Health Care Pvt Ltd (VHCPL), to which former finance minister P Chidambaram and his son, Karti Chidambaram, are linked.
On August 28, two separate summons were issued by Dr Rajeshwar Singh, deputy director, ED — one to the managing director of M/s VHCPL and the other to V Dwarakanathan — the latter used as a conduit by Karti Chidambaram to increase his stake in Vasan via some front companies.
In his summons, Rajeshwar Singh explained that he was investigating under the Prevention of Money Laundering Act, 2002, and that the attendance of the managing director of VHCPL was necessary in connection with it.
In an annexure to the summons, the ED has sought information on eleven different aspects pertaining to the company. They include: (a) names and addresses of companies, firms and trusts in and outside India in which promoters, directors and shareholders of the VHCPL held positions since 2007 to 2012; (b) details of those who exited or entered the company between 2007 and 2012, along with number of shares issued, amount paid, premium, if any; (c) copy of the balance sheet for the same period; (d) net worth, profit and loss and dividend paid during these years; (f) details of shares and debentures issued by VHCPL; and (g) details of deposits received from individuals and companies and loans given during financial years 2007-08 to 2011-12.
In the other summons sent to Dwarakanathan, the ED sought copies of his passports, names of his family members, copy of I-T returns filed from 2004-05 to 2010-11, details of bank accounts and immovable assets held by him in India and outside since 2005, transactions done with companies of Karti Chidambaram and his family, names and addresses of companies in and outside India whose debentures and shares he acquired and transferred since 2005 under secondary sale of shares or in the market. The ED has also sought information about names and addresses of individuals from whom such shares and debentures were acquired and to whom they were transferred, amount paid for acquisition and amount received by transfer.
As reported in these columns, Vasan was first incorporated in 2007 with Dr M Arun and his wife, Meera Arun, as first shareholders, both of whom were issued 27 lakh shares of Rs 100 per share on a premium of Rs 100 plus. Three lakh shares were separately given to Dwarakanathan at the same price and premium.
Then begins the game. Within 48 hours of acquiring the shares, Dwarakanathan transferred half of his holdings (1.5 lakh shares equivalent to five per cent of Vasan’s capital) to a company which goes by the name, Advantage Strategic Consulting Private Ltd. This company is two-thirds owned by Ausbridge Holdings and Investments Pvt Ltd, which Karti Chidambaram (KC) holds almost fully. But the transfer of shares happened without any premium having been paid. In other words, KC’s company secures Vasan’s shares for a lesser price.
Why has Dwarakanathan chosen to buy shares at a premium and then sell them by incurring loss, is the obvious question that the ED has to look into. That could well and truly blow the lid off the entire operation of Vasan, whose turnover grew by 38 times in just three years.
If only the ED pursues the matter to its logical end, the link between Vasan and KC via Dwarakanathan will become known. For the last few years, no one doubted that the de facto owner of Vasan was KC. Otherwise, Vasan could not have raised equity of Rs 230 cr but a debt of over Rs 600 cr.
Vasan Eye Care's One-line Denial Shamelessly Evasive
By S Gurumurthy
Published: 19th September 2015 03:59 AM
Last Updated: 19th September 2015 10:24 AM
![Image Courtesy: Rameshng/Wikimedia Commons]()
![AdTech Ad]()
Image Courtesy: Rameshng/Wikimedia Commons
The New Indian Express came across through Twitter, Vasan’s one line denial of its exposé (“PC, Vasan Eye Care and Rs 223-cr Black Money” Sept 17, 2015) in a posting by Vasan in its business page on Facebook. Headlined “A note for all”, Vasan said in the post, “We vehemently deny the malicious and baseless allegations against our Company in the article.” For the rest, the FB post talked about how credible the Vasan board of directors is and how huge are the eye care services provided by it — neither of which was the subject of the NIE exposé. The same note minus the headline was addressed to the Editor of The New Indian Express on Thursday afternoon by fax. Since the note-turned “reply” talks about malicious and baseless allegations in the article, this paper wants to know what those allegations in the article are. The so-called reply is deafeningly silent on every critical question thrown up by the exposé. Here are some of the questions raised by the exposé which Vasan has to answer.
Who is J Dinakaran and what is JD Group?
What is Vasan’s relation with JD Group?
Did Vasan not receive Rs 8.56 cr as interest-free loan from JD Group?
Why did JD Group have to give interest-free loan to Vasan?
Did Dr Arun receive hundreds of crores of black money from JD Group?
Did JD Group not tell Vasan about the I-T search on them in Dec 2014?
If not, was Vasan unaware of the raid till September 17, 2015?
Who is Dwarakanathan?
Did Vasan not allot 3 lakh shares to Dwarakanathan on October 28, 2008, at a premium?
Did he not transfer 1.5 lakh out of it within 48 hours, reportedly at a loss of Rs 1.5 cr to a company controlled by Karti Chidambaram?
● Were the turnover figures of Vasan mentioned in the article correct?
● Can you explain how the top-line pole-vaulted from Rs 16 crore in the earlier year to Rs 311 cr in 2010-11, to Rs 462 cr in 2011-12 and to Rs 604 cr in 2012-13?
● Did Vasan file balance sheet for 2013-14 due in Sept 2014 and when did it file it with company law authority?
● Has it not filed the Income tax return for 2013-14 in 2014?
● How did it file tax return without the balance sheet?
● Did Vasan default in paying tax deducted at source of Rs 19.22 cr?
● Did Vasan not know it is a serious offence which can send Dr Arun to jail?
● Who gave Vasan the assurance no prosecution will be filed?
● Who advised Vasan to write to the CBDT for time to pay the amount?
● Did Vasan’s representative meet the CBDT chairman?
● Was Vasan not valued at $1 billion in 2014 by Fitch?
● Did Vasan not value itself at Rs 7,000 cr in 2014?
● How is it that the high value company could not pay a relatively small tax deducted from others?
And a few more
● Is not Dr A M Arun listed as the 244th richest in with Rs 2,314 cr in Hurun India report of 2015?
● Why then did he not help Vasan pay tax deducted from others to the treasury?
● Is Vasan paying its suppliers on time now?
● Is it financially healthy now?
● Has ED not issued notice to Vasan and Dr Arun on the transfer of 1.5 lakh shares from Dwarakanathan to Karti Chidambaram’s company?
But Vasan’s reply does not answer them because either it dare not or it is advised not to. Vasan does not dispute any facts in the article.
While replying to a charge, what is not denied is generally regarded admission.
It does not need any super lawyer to advise on such fundamentals. It is better not to reply than make one-line denials with adjectives like malicious and baseless without showing how it is malicious or baseless.
Vasan is deafeningly silent on the hard facts in the NIE exposé that raises questions which Vasan finds unanswerable. Result, Vasan attempts to escape them in a one-line denial. Vasan’s ritualistic denial shamelessly ducks the facts in the article and evades the obvious questions the exposé raises.
Post Script
Surprisingly there is no response or rebuttal from P Chidambaram or Karti Chidambaram. If the denial of Vasan is on their behalf also, the comments and questions equally hold good for them. But there are far more questions they have to answer than Vasan or Dr Arun.
![Avatar]()
tony f • 6 hours ago Thanks a lot for Indian Express for exposing such rouges .
Vasan has not even paid its employees their salaries for the past three months , they didn't pay the incentives for the past one year, they didn't pay the TDS[tax deducted at source ] since 2013 -2014. and Dr Arun has stolen everyone's money and become the richest man. He should be jailed and all his assets should be seized.![Avatar]()
guna tony f • 6 hours ago Who was ARUN some 10 years back? PERSONAL COMPUTER and arun made money skilfully and the law can not touch the law makers
![Avatar]()
N S Raghavan • 6 hours ago surprising the the so called independent media both print & electronic have not picked up the story. Does the old corrupt regime still holds so much of clout with media houses? The Govt. should not spare any official who is trying to protect the corrupt. Whatever the english media shouts there is a great need in the Govt, to weed out officials who are inclined towards the previous regime. We have tolerated this filth enough.![Avatar]()
guna N S Raghavan • 5 hours ago The bureaucracy and the judiciary are solidly behind them. As in vadra and the NEW HERALD CASE they have a fool of us Nothing will happen.
![Avatar]()
C M Amrtheswaran • 8 hours ago Men may come and men may go, but Vasan will grow well as before like the Sun Group.![Avatar]()
Balakrishnan Hariharan • 8 hours ago Brilliant !! TNIE - Three Cheers to you, Sir. True Ramanath Goenka spirit. Keep it up,
regards
