General Atlantic and India Equity Partners, two top global private equity funds, both filed petitions with the Company Law Board for the appointment of an administrator to gain control over Fourcee Infrastructure Equipment. The petition alleged the promoters have been misdirecting funds, thus the need for the appointment of a panel to review the company's financials.
The company has expanded through investments from private equity firms. Funds such as the SIDBI Venture Capital and Mayfield Fund had invested around USD10,98 million back in 2010, which was followed soon thereafter by India Equity Partners for another USD10 million and General Atlantic with USD104 million back in 2012.
There have been allegations of extensive forgery as well as willful deceit by the management. These came to light after an audit was conducted by BSR & Company's, an affiliate of KPMG. Soon thereafter, a forensic audit was conducted by Ernst & Young LLP.
The two PE funds filing the petition named promoters Rajesh Lihala and Vinay Singh for the financial irregularities. Lihala is the firm's executive chairman while Singh is its managing director.
Join the Conversation