US Drug Firm Takeover Promise Turns Costly for Pharma Entrepreneur, Rs 16 Cr Shares Allegedly Lost
Vadodara: A pharmaceutical entrepreneur from Vadodara has alleged that he was cheated of shares worth around Rs 16 crore after being promised a takeover of a US-based pharmaceutical company. The Padra police have registered a complaint against four people, including three NRIs originally from Kheda district and an Ahmedabad-based chartered accountant, in connection with the alleged international business fraud.
The complainant, Pashwantbhai Chunibhai Patel, a resident of Monali Park Society in Manjalpur, is the Chairman and Managing Director (CMD) of Elysium Pharmaceutical Ltd, located at Dabhasa village in Padra taluka. According to his complaint, Patel had business dealings in the pharmaceutical sector and became interested in a proposed transaction involving Invatec Pharma Solutions LLC, a US-based pharmaceutical company in New Jersey.
Invatec Pharma Solutions is owned by Nilesh Patel, who had 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.
The complaint states that Invatec Pharma Solutions subsequently required working capital for its operations. Dr Hemant Patel allegedly sought shares of Elysium Pharmaceutical as security against the proposed financial arrangement and assured Patel that the promised transaction involving the US company would be completed.
Based on this assurance, Patel allegedly transferred a total of 3.20 lakh Elysium Pharmaceutical shares to Dr Hemant Patel's demat account through transactions dated August 1 and August 20, 2024. The shares were valued at approximately ₹500 per share, according to the complaint, putting their total value at around ₹16 crore.
However, Patel has alleged that the proposed arrangement was not fulfilled. According to his complaint, the accused neither transferred the promised 51% stake in Invatec Pharma Solutions to Elysium Pharmaceutical nor provided the promised $20 million loan. Consequently, the proposed takeover of the US-based pharmaceutical company did not materialise.
Patel further alleged that he repeatedly demanded the return of the Elysium Pharmaceutical shares and the money involved in the proposed arrangement. However, according to his complaint, the shares and funds were not returned. He subsequently approached the Padra police and lodged a complaint over the alleged transactions.
Following the complaint, Padra police have initiated an investigation into the alleged fraud and the transactions involving the Elysium shares and the proposed takeover of Invatec Pharma Solutions. Investigators are examining the transfer of the 3.20 lakh shares, the proposed US company acquisition, the alleged $20 million funding commitment, and the dealings between the parties.
The investigation is also examining the circumstances surrounding the representations allegedly made about the $10.5 million valuation of Invatec Pharma Solutions and the promised 51% stake, along with the arrangement under which Elysium shares were allegedly provided as security, reports Gujarat Samachar.
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