RAIPUR (India CSR): The Enforcement Directorate (ED) conducted searches at around 17 locations across the country on Friday, October 27, 2023, in connection with an alleged Rs 1,600-crore scam involving Parabolic Drugs Pharma Ltd. The company’s director-promoters Vineet and Pranav Gupta are also the founders of Ashoka University.
Ashoka University distances itself from Parabolic Drugs
Ashoka University has clarified that the university has no connection with Parabolic Drugs and its directors. The university has over 200 founders and donors who have made personal philanthropic contributions to Ashoka. Vineet and Pranav Gupta have already voluntarily stepped down from all boards and committees of the university pending the CBI case and are cooperating fully with the investigations.
CBI books top executives of Parabolic Drugs
The Central Bureau of Investigation (CBI) has booked the top executives of Parabolic Drugs and founders of Ashoka University for allegedly defrauding a consortium led by the Central Bank of India of Rs 1,626.74 crore. The accused allegedly cheated the consortium of banks through criminal conspiracy and forgery and diverted loans it took for other uses than mentioned in the loan applications.
ED raids at several locations linked to Ashoka University founders
The ED has intensified raids at premises linked to Vineet and Pranav Gupta, director-promoters of Chandigarh-based Parabolic Drugs, who are also the founders of Ashoka University. The accused allegedly cheated a consortium of banks “by criminal conspiracy, forgery, using forged documents knowing the same to be forged and availed the loan funds and thereafter diverted the same”.
Founders step down from all boards and committees
Days after the CBI accused Vineet and Pranav Gupta of over Rs 1,600 crore fraud, they stepped down from all boards and committees of Ashoka University. In a statement, the university distanced itself from the business dealings of its founders. The university said that their individual business dealings and operations have no connection to the university.
In December 2021, the Central Bureau of Investigation (CBI) initiated a bank fraud case involving the founders of Parabolic Drugs, which led to Vineet Gupta and Pranav Gupta stepping down from their positions on all boards and committees at Ashoka University.
The university garnered significant attention following the publication of a research paper by one of its professors, titled “Democratic Backsliding In World’s Largest Democracy.” Ashoka University later clarified its stance, dissociating itself from the paper, which was followed by the resignation of the involved professor.”
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