Update: Rajesh Agarwal, co-founder, Micromax Informatics Limited has quit the company to focus on the legal proceedings to clear his name of the alleged charges, the company said.
Following reports that owners of Micromax have been arrested by CBI, Micromax Informatics Limited clarified that Manish Tuli has no association with the company. Rajesh Agarwal was present in his personal capacity with Manish Tuli, said Micromax in a statement.
Earlier: The central bureau of investigations has arrested Rajesh Agarwal, co-founder of Micromax for allegedly bribing government officials, according to a report.
Rajesh Agarwal and Manish Tuli of Micromax Informatics were arrested by the CBI while allegedly bribing engineers of North Delhi Municipal Corporation for clearance to a construction project. (source)
Two officials of the municipal corporation were also arrested and CBI also raided their premises, the report said. Cash worth Rs 40
cr lakh was recovered from an MCD junior engineer’s house.
In 2010, the company raised $43 mn from Sequoia Capital, Sandstone Capital and Madison Capital Management at a $440 mn valuation. There were talks of the company going for an IPO in 2012 which was put off. The development could delay the company’s rumoured IPO plans further more.
This is the second time the co-founder of a venture backed company has been arrested in the recent past. On July 30, the FBI arrested Sandeep Aggarwal, founder of e-commerce company ShopClues on Insider trading charges.