ED files prosecution complaint against Parabolic Drugs and others in bank fraud case

The Enforcement Directorate has filed a prosecution complaint against Parabolic Drugs Limited and others.

The Enforcement Directorate has filed a prosecution complaint against Parabolic Drugs Limited and others, including two individuals who are among the founders of Ashoka University, in a money laundering case involving an alleged ₹1,627 crore bank fraud.

Among those arraigned as accused were the company’s directors, Pranav Gupta and Vineet Gupta, as well as chartered accountant Surjeet Kumar Bansal. The special court concerned has taken cognisance of the prosecution complaint.

The ED probe is based on a first information report (FIR) registered by the Central Bureau of Investigation (CBI) against the company and its directors. “...during the period from 2009 to 2014, Parabolic Drug Ltd., its directors and other unknown public servants and private persons caused a wrongful loss to the extent of ₹1,626.74 crore to the Central Bank of India, other banks and financial institutions,” said an official.

During the money laundering investigation, the ED conducted searches at 29 premises under the Prevention of Money Laundering Act, in Chandigarh, Ambala, Panchkula, Sonepat, Mumbai, and Delhi. These searches resulted in the recovery of movable and immovable assets worth ₹114 crore, digital devices, and other incriminating documents. Subsequently, the Guptas and Mr. Bansal were arrested in October 2023.

The Guptas are among the founders of Ashoka University, which has previously said that it had no past or current relationship with Parabolic Drugs and that any attempt to create a link was without any basis and misleading.

“Vineet and Pranav Gupta are two among the more than 200 founders and donors of Ashoka University, who have contributed to Ashoka’s creation and growth in their personal philanthropic capacity and whose individual businesses have absolutely no bearing on the university,” the University had said.

Parabolic Drugs manufactures bulk drugs and drug intermediaries. The CBI has alleged that from April 18, 2012, it had not cleared its liabilities towards the suppliers even though it had been issued Letters of Credit (LCs) for the purpose. Consequently, the LCs had started getting devolved.