A Vadodara-based pharmaceutical entrepreneur has alleged that he lost shares valued at around ₹16 crore after a proposed deal to acquire a controlling stake in a US-based pharmaceutical company failed to materialise.
Padra Police have registered a complaint against four people, including three non-resident Indians originally from Kheda district and an Ahmedabad-based chartered accountant. Police have started an investigation into the allegations.
51% Stake Promised in US Pharma Company
According to the complaint, Pashwantbhai Chunibhai Patel, CMD of Elysium Pharmaceutical Ltd, became interested in acquiring a stake in New Jersey-based Invatec Pharma Solutions LLC.
The complainant alleged that Dr Hemant Patel, Kishan Patel and chartered accountant Harsh Dipakbhai Doliya visited Elysium Pharmaceutical in February 2024. During the meeting, they allegedly represented that Invatec Pharma Solutions was valued at approximately $10.5 million and that Elysium would receive a 51% controlling stake in the company.
The proposed arrangement was presented as a business takeover opportunity involving the US pharmaceutical company.
₹16 Crore Worth of Shares Allegedly Transferred
The complaint states that the proposed US company subsequently required working capital. Dr Hemant Patel allegedly requested shares of Elysium Pharmaceutical as security and assured Patel that the proposed transaction would proceed.
Based on those assurances, Patel allegedly transferred 3.20 lakh Elysium Pharmaceutical shares to Dr Hemant Patel's demat account in two transactions on August 1 and August 20, 2024.
The complainant valued the shares at approximately ₹500 each, putting their combined value at around ₹16 crore. According to the complaint, the shares were transferred as security in connection with the proposed takeover and funding arrangement.
Takeover and $20 Million Funding Allegedly Did Not Materialise
Patel has alleged that the promised 51% stake in Invatec Pharma Solutions was never transferred to Elysium Pharmaceutical. He also alleged that the proposed $20 million loan was not provided.
According to the complaint, repeated requests for the return of the shares and money did not result in their recovery. Patel subsequently approached Padra Police and filed a complaint.
Police have registered the case and initiated an investigation into the allegations.
Investigation Underway
The case centres on the alleged transfer of shares in connection with a proposed international pharmaceutical transaction. The allegations made in the complaint are yet to be established through the investigation or judicial proceedings.
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Conclusion
The Vadodara case highlights the financial risks that can arise when substantial shares or assets are transferred as security during a proposed business transaction. With Padra Police investigating, the facts surrounding the alleged ₹16 crore loss and the proposed US company takeover will be determined through the legal process.