A Vadodara-based pharmaceutical entrepreneur has alleged that he was cheated of shares worth around ₹16 crore after being promised a controlling stake in a US-based pharmaceutical company and funding for the proposed deal.
Padra police have registered a complaint against four people, including three NRIs originally from Kheda district and an Ahmedabad-based chartered accountant, and initiated an investigation.
The complainant, Pashwantbhai Chunibhai Patel, a resident of Mohani Park Society in Manjalpur, is the CMD of Elysium Pharmaceutical Ltd, located at Dabhasa village in Padra taluka. According to his complaint, the dispute arose from a proposed takeover involving US-based Invatec Pharma Solutions LLC.
51% Stake Promised in US Pharma Company
Patel had business dealings in the pharmaceutical sector and became interested after Nilesh Patel, the owner of Invatec Pharma Solutions LLC in New Jersey, expressed an intention to sell the US-based company.
According to the complaint, Dr Hemant Patel, Kishan Patel and their chartered accountant Harsh Dipakbhai Doliya visited Elysium Pharmaceutical on February 15, 2024. During the meeting, they allegedly represented that Invatec Pharma Solutions was valued at $10.5 million and that a 51 per cent stake in the company would be transferred to Elysium Pharmaceutical.
The proposed transaction was presented as an opportunity for Elysium to acquire a controlling interest in the US pharmaceutical company.
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₹16 Crore in Shares Transferred as Security
The complaint states that Invatec 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 deal would be completed.
Based on this assurance, Patel allegedly transferred a total of 3.20 lakh shares of Elysium Pharmaceutical to Dr Hemant Patel’s demat account in two transactions on August 1 and August 20, 2024.
According to the complaint, the shares were valued at approximately ₹500 each, putting their combined value at around ₹16 crore. The transfer of these shares was allegedly made as security in connection with the proposed transaction and funding arrangement.
Takeover and $20 Million Funding Allegedly Failed
Patel has alleged that the accused neither transferred the promised 51 per cent stake in Invatec Pharma Solutions to Elysium Pharmaceutical nor provided the promised $20 million loan. The proposed takeover of the US company also did not materialise.
The complainant said he repeatedly sought the return of the shares and money, but they were not returned. He subsequently approached Padra police and lodged a complaint.
Police have initiated an investigation into the alleged fraud following the complaint.
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