The arrests were made under provisions of the Prevention of Money Laundering Act (PMLA). The three of them are expected to be produced before a court in Chandigarh by the ED, which will seek their custody. 

The money laundering case is linked to the ₹1,627 crore-alleged bank fraud involving Parabolic Drugs. The Chandigarh-based pharmaceutical company is promoted by Pranav Gupta and Vineet Gupta, and was booked by the Central Bureau of Investigation (CBI) in 2021.

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The firm has been charged with defrauding a consortium of banks – led by the Central Bank of India – of ₹1,627 crore. The Guptas had stepped down from their posts at Ashoka University in 2022, after the CBI filed the case against them in connection with the alleged bank fraud involving Parabolic.

The ED arrests also come a day after the agency carried out searches at 17 locations in Delhi, Mumbai, Chandigarh, Panchkula and Ambala, in connection with the case.

Following the ED raids, Ashoka University had issued a statement to distance itself from the controversy. 

“Ashoka University reiterates that Parabolic Drugs is in no way linked to Ashoka University. Ashoka University has no past or current relationship with Parabolic Drugs, the company being investigated, and any attempt to create a link is without any basis and misleading,” the statement noted.

(With inputs from agencies)

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Updated: 28 Oct 2023, 07:30 PM IST