Sequoia Capital says its MD quit Vasan Healthcare board in Nov

Investment firm claims it learnt of a regulatory probe into Vasan via newspaper on Sept 17 and took prompt steps

In continuation to its statement in Twitter today on the Enforcement Directorate's visit to its office as part of investigation on Vasan Healthcare, investment firm Sequoia Capital India said that its nominee has resigned from the board of Vasan Healthcare on November 18, 2015.

A statement issued by the company said that it first came to know of a regulatory investigation into Vasan Healthcare through a newspaper article on September 17, 2015 and took prompt steps. V T Bharadwaj, managing director of Sequoia Capital India Advisors Private Limited, who was Sequoia Capital India's nominee on the Vasan Healthcare Board of Directors, demanded that management of Vasan Healthcare conduct a thorough investigation into the allegations.

"Subsequently, V T Bharadwaj resigned from the board of Vasan Healthcare on 18th November 2015," informed the statement.

Vasan Healthcare officials were not reachable for comment.

Sequoia on Tuesday morning tweeted, "Yesterday's ED visit is part of the ongoing investigation into Vasan where Sequoia India is a minority investor along with others. Sequoia has adopted a policy of full compliance with that investigation & has dutifully responded to governmental inquiries recd to date. We continue to co-operate with the ongoing investigation on Vasan."

Earlier, there were reports that the deal fell into the purview of investigation after Sequoia acquired preference shares of Vasan Healthcare. Vasan Healthcare had earlier sold shares to Advantage Strategic Consulting Pvt Ltd allegedly at a discounted price, and Advantage Strategic was under the scanner of ED in connection with the Aircel-Maxis deal. Majority of the stake of Advantage Strategic was acquired by Ausbridge Holdings later, in which former union finance minister P Chidambaram's son Karti Chidambaram was a director, added reports.

Karti Chidambaram today said, "I have no idea about it (raid in Sequoia Capital and its reason). I have no comments to offer".

Reiterating its support to the investigation, the company said that it has adopted full compliance with the investigation, and continues to dutifully respond to all inquiries received to date.

During the course of this investigation, the Sequoia Capital India team has met the ED officials multiple times and has answered every query placed before us. It said that Sequoia Capital India has absolutely no association with companies like Aircel or Maxis and its only connection to the ED visit is that Sequoia Capital India is a minority investor in Vasan, which is one out of the more than 100 investments made in India over the last 10 years.