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Bombay Stock Exchange Rejects Raft Motors IPO Amid Allegations of Fraud and Forgery



In a dramatic turn of events, the Bombay Stock Exchange (BSE) rejected Raft Motors Ltd.'s Draft Red Herring Prospectus (DRHP) on January 9, 2025, citing irregularities and disputes raised by the company's founder, Parivesh Shukla. This marks a significant setback for the company, which had filed its DRHP on December 22, 2024, to raise funds through a BSE SME IPO.


Allegations of Fraudulent Share Transfer


The controversy began on December 24, 2024, when Parivesh Shukla reviewed the DRHP on Raft Motors’ website. To his shock, he discovered that his name was missing as a promoter and shareholder. Shukla immediately raised a complaint with BSE and SEBI, alleging that Aditya Vikram Birla, Managing Director of Cosmic CRF Ltd., unlawfully removed his name from the DRHP.


In response, Raft Motors submitted a Form SH4—a document used to transfer shares—to BSE on January 1, 2025. The form claimed that Shukla had transferred 244,875 shares to Raja Saha at ₹10 per share. Shukla dismissed these claims, stating, “I was shocked to see my shares transferred to an unknown person, Raja Saha, without my consent. I have never met or spoken to this individual.”


Complaint Filed with Police


Shukla lodged a formal complaint with the local police, alleging fraud and forgery. He asserted that the signatures on the share transfer documents were forged and no payments were ever received for the shares. “This is a shameful act by Raft Motors management and a blatant attempt by Aditya Vikram Birla and his associates to unlawfully take ownership of my shares,” Shukla stated.


BSE Rejects DRHP


BSE rejected Raft Motors’ DRHP on January 9, 2025, citing unresolved disputes and a lack of supporting documentation. Despite repeated reminders, the company and Raja Saha failed to provide:


Payment proof for the share transfer


Original share certificates


Original share transfer deeds



The rejection by BSE highlights serious lapses in corporate governance and accountability within the company.


A Call for Justice


Shukla has called this incident the "biggest scam against startup founders." He appealed to prominent investor Aashish Kacholia and Prime Minister Narendra Modi to intervene and ensure justice is served. “This is a clear case of fraud and forgery orchestrated by Aditya Vikram Birla with the help of Raft Motors management and his associates,” he said. Shukla emphasized that this case is not just about him but about protecting the rights of all founders who dedicate their lives to building brands.


A Warning to the Startup Ecosystem


Shukla urged the startup community to stand with him and circulate this case widely to raise awareness. “If this can happen to me, it can happen to any founder. We must ensure this is the last case of its kind. Justice must prevail to protect the entrepreneurial spirit of our nation,” he said.


The matter is now under police investigation, and Shukla has promised to expose all culprits involved. The business community awaits the outcome of this landmark case, which could set a precedent for safeguarding founder rights in India’s startup ecosystem.

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