Slapped with Sebi's restraint order in a case related to raising of funds through Global Depository Receipts, Transgene Biotek has put the blame on Nirmal Kotecha for doing "forgery and fraud" on the firm.
While, the pharma company is filing an appeal before the Securities Appellate Tribunal against Sebi interim order, it is also in the process of filing complaints against Kotecha, who was also involved in a major securities market manipulation at Pyramid Saimira Theatre few years ago.
In a BSE filing today, Transgene Biotek also said that the ED (Enforcement Directorate) "is seized of the matter as informed to Sebi, on the...Forgery and fraud".
A preliminary probe by Securities and Exchange Board of India (Sebi) found that Transgene Biotek had transferred USD 29.92 million, out of total GDR proceeds of USD 40.5 million, through a subsidiary "for undisclosed and ulterior purposes under the garb of consideration for technology transfer and for other reasons".
After raising of funds, the money was first kept in a Switzerland-based bank and some parts were later transferred to other entities in Hong Kong and Canada, among others, including to a subsidiary.
Accordingly, pending detailed probe in the matter, Sebi had through a interim order last month directed Transgene "not to issue equity shares or any other instrument convertible into equity shares or any other security till further orders".
It has also barred Transgene chairman and managing director K Koteswara Rao and five others from the dealing in the securities market, till further directions.
In the filing, Transgene Biotek has clarified that the company was "enticed" by Kotecha for raising funds for various operations such as acquisition of technologies and arranging clinical and pre-clinical studies on its molecules.
"Nirmal Kotecha and his aide Kishore Tapadia convinced the management of funding with GDR proceeds and structured the whole process in a manner essentially ensuring that it would get the much desired funds in a legal transparent manner," Transgene Biotek said.
Further, the company said that the funds deposited in Switzerland's Investec Bank were siphoned away in the names various entities and banks statements were provided by Kishore Tapadia "camouflaging to show normal balances".
Transgene Biotek has claimed that the funds were transferred fraudulently on basis of forged letter to the banks under the signature of the company's CMD.
"Nirmal Kotecha, we understand admitted to ED on the said siphoning of funds," the company added.
