ED searches Bengaluru firm in FEMA case

The Enforcement Directorate (ED) has conducted searches on a Bengaluru-based prominent venture capital investor firm in connection with its alleged forex violations probe against Vasan Eye Care, a Chennai-based healthcare group.
Officials said a team of agency sleuths carried out searches at the business premises of Sequoia Capital in Bengaluru under the provisions of the Foreign Exchange Management Act (FEMA) and the action was necessitated as ED is probing Vasan Eye Care with which Karti Chidambaram was once linked.
The Bengaluru company which calls itself "a startup building partner to founders in India who want to turn business ideas into enduring companies" confirmed the action when it put out a few tweets.

"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 cooperate with the ongoing investigation on Vasan," it said.
Sources added investigators picked up some documents as part of the search.
(REOPENS DES29)

Sequoia Capital India in a statement said it has fully supported the regulatory investigation, and has adopted a policy of complete transparency and full compliance with that 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. We adopted the same approach yesterday during the ED visit to our offices," it said.
The statement also said contrary to media reports, Sequoia Capital India has absolutely no association with companies like Aircel or Maxis.
"Our only connection to the ED visit is that Sequoia Capital India is a minority investor in Vasan, which is one out of the 100+ investments made in India over the last 10 years," it added.
Sequoia Capital India said it first came to know of a regulatory investigation into Vasan Healthcare through a newspaper article on Sept 17, 2015 and took a few prompt steps.

V T Bharadwaj, a 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, Bharadwaj resigned from the board of Vasan Healthcare on November 18, 2015, it said.