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General Atlantic, India Equity Partners seek action against Fourcee Infrastructure

  • Mirzaan Jamwal
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General Atlantic (GA) and India Equity Partners (IEP) are pursuing legal action against their portfolio company Fourcee Infrastructure Equipments, accusing executives of “extensive forgery and willful deceit.”

Rajesh Lihala and Vinay Singh, Fourcee's executive chairman and managing director, respectively, are among those named in a petition filed with the Company Law Board (CLB).

The PE investors are seeking appointment of a CLB-appointed administrator to take control of Fourcee and conduct further investigation into the company's financial affairs. GA and IEP are also evaluating several litigation options in India and other jurisdictions.

IEP committed $10 million to the Mumbai-based logistics firm in 2011, while GA invested $104 million in 2012. SIDBI Venture Capital and Mayfield Fund had also invested $10.98 million in 2010, which Mayfield later exited.

The allegations came to light after an ongoing audit of Fourcee's financial statements for the fiscal year ended March 2013 by BSR & Company, an affiliate of KPMG. The board then appointed Ernst & Young for a forensic audit.

The IEP and GA's non-executive representatives have resigned from the company's board of directors.

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