Vadodara Pharma Entrepreneur Allegedly Duped of ₹16 Crore in US Company Takeover Deal
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
A Vadodara-based pharmaceutical entrepreneur has alleged that he was cheated of shares worth around ₹16 crore after being promised a takeover of a US-based pharma company. Padra police have registered a complaint against four people, including three NRIs originally from Kheda district and an Ahmedabad-based chartered accountant.
Promised 51% stake in US pharma company
The complainant, Pashwantbhai Chunibhai Patel, a resident of Monali Park Society in Manjalpur, is the CMD of Elysium Pharmaceutical Ltd, located at Dabhasa village in Padra taluka.
According to his complaint, Patel had business dealings in the pharmaceutical sector. He became interested after Nilesh Patel, who owns Invatec Pharma Solutions LLC in New Jersey, expressed an intention to sell the US-based company.
On February 15, 2024, Dr Hemant Patel, Kishan Patel and their chartered accountant Harsh Dipakbhai Doliya allegedly visited Elysium Pharmaceutical. During the meeting, they allegedly represented that Invatec Pharma Solutions was valued at $10.5 million and that 51% of its shares would be transferred to Elysium Pharmaceutical.
3.20 lakh Elysium shares transferred as security
The complaint states that Invatec subsequently required working capital for its operations. Dr Hemant Patel allegedly sought Elysium's shares as security against the proposed financial arrangement and assured Patel that the promised deal would be completed.
Based on this assurance, Patel allegedly transferred a total of 3.20 lakh shares of Elysium Pharmaceutical to Dr Hemant Patel's demat account on August 1 and August 20, 2024.
The shares were valued at approximately ₹500 each, making their total value around ₹16 crore, according to the complaint.
Neither takeover nor promised funding materialised
However, Patel has alleged that the accused neither transferred the promised 51% stake in Invatec Pharma Solutions to Elysium nor provided the promised $20 million loan. The proposed takeover of the US company also did not materialise.
The complainant said he repeatedly demanded the return of the shares and money, but they were not returned. He subsequently approached Padra police and lodged a complaint.
Based on the complaint, police have initiated an investigation into the alleged fraud and the transactions involving the Elysium shares and the proposed US pharma company takeover.
