Ashoka University Co-Founders Arrested By ED For Money Laundering, University Releases Statement

Ashoka University Co-Founders Arrested By ED For Money Laundering, University Releases Statement

Pranav and Vineet Gupta of Ashoka University arrested for money laundering linked to Parabolic Drugs, institution disassociates from scandal, asserting their minimal role.

FPJ Education DeskUpdated: Saturday, October 28, 2023, 06:15 PM IST
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Ashoka University Co-Founders Arrested In Money Laundering | Representative Image

In a startling development, two co-founders of the private institution, Ashoka University, along with a chartered accountant, have been arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). Pranav Gupta and Vineet Gupta, who were instrumental in establishing Ashoka University, and chartered accountant SK Bansal, are now under the scanner of the ED. The three are likely to be produced before a court in Chandigarh, where the ED will seek their custody.

Statement Released by Ashoka University

The controversy surrounding these arrests centers on their alleged involvement with Parabolic Drugs, a company accused of defrauding a consortium of banks to the staggering tune of Rs 1,626 crore. In a swift response to these developments, Ashoka University released a statement reiterating that the institution has no affiliations with Parabolic Drugs. They emphasized that the Guptas are just two of more than 200 founders and donors who have contributed to the university's growth.

The statement by Ashoka University underscores the clear separation between the institution and the legal issues surrounding Pranav and Vineet Gupta's other business ventures. The university operates under the governance of an autonomous board of trustees and an independent governing body, further emphasizing its autonomy from any external financial misconduct.

These arrests come after the Central Bureau of Investigation (CBI) initiated an inquiry into the alleged bank fraud by Parabolic Drugs. The case alleges criminal conspiracy and forgery to divert loans obtained for purposes other than what was originally stated in the loan applications.

Pranav Gupta, the founder and managing director of Parabolic Drugs, and Vineet Gupta, a whole-time director, have faced intense scrutiny in connection with the ongoing investigations. Vineet Gupta, served as the first Pro Vice-Chancellor of Ashoka, and Pranav Gupta is a co-founder and trustee of the university.

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