CBI investigation of Parabolic Drugs: Ashoka University co-founders step down from board

Two of the co-founders of Ashoka University – Vineet Gupta and Pranav Gupta – have stepped down from the board and committees after the Central Bureau of Investigation (CBI) filed a case against them and a few others of Parabolic Drugs for allegedly defrauding Central Bank of India and other banks of Rs 1,627 crore.

Pranav Gupta is managing director of Parabolic Drugs and his brother Vineet is a director in the company.

“The investigation of Parabolic Drugs and its directors has nothing to do with Ashoka University… In keeping with the high standards of governance at the university, Vineet and Pranav have already voluntarily stepped down from all boards and committees of the university pending the CBI case and are cooperating fully with the investigation,” the liberal arts university established by collective philanthropy said in a statement.

The university has over 200 founders and donors who have made philanthropic contributions. “Their individual business dealings and operations have no connection to the university,” the institution said.

The university said any attempt to create a link between the investigation of Parabolic Drugs with the institution “is frivolous and misleading”.

On December 31, CBI said that it had registered a case on a complaint from Central Bank of India and other banks against the company based in Chandigarh and others including managing director, other directors, guarantors and unknown public servants/private persons.

“It was alleged that the accused had cheated the consortium of banks to the tune of Rs 1626.74 crore by criminal conspiracy, forgery, using forged documents and availing loan funds and thereafter diverting the same,” CBI had said.

CBI has conducted searches at multiple locations including Chandigarh, Panchkula, Ludhiana, Faridabad and Delhi which “resulted in the recovery of incriminating documents, articles, and cash amount” of Rs 1.58 crore.