Gadkari's 'fraud' nailed? Driver made director in 5 companies
New Delhi: All of last week, pressure continues to mount on BJP President Nitin Gadkari, who is facing serious allegations of corporate fraud, with more questions being raised on the source of funds for Gadkari's Purti group.
The beleaguered BJP supremo is now facing allegations of using shell companies to fund his business, and of receiving investments from contractors.
According to a report published in ToI, investigations revealed that Purti Power and Sugar Ltd firm, controlled by Gadkari, recieved significant investments and large loans by a construction firm, Ideal Road Builders (IRB) Group, which had won contracts between 1995 and 1999.
Gadkari was the Public Works Department Minister of a Shiv Sena-BJP government in Maharashtra in 1995-99, when IRB was reportedly awarded hefty contracts. IRB's turnover rose from Rs 41 crore in 1996 to Rs 67 crore in 1999.
The IRB connection is significant since the company and its promoter D P Mhaiskar together subscribed to 68.4 lakh shares of Purti.
A close examination of 2010-11 records show that besides IRB, a clutch of 16 companies are other significant shareholders in Purti. Notably, these companies do not exist at their registered addresses and the firms are controlled by Gadkari's close aides. The BJP chief, who is one of the seven promoters of Purti, currently holds just 310 shares worth Rs 3,100.
Just like the fake addresses of the firms that invested and loaned Purti, the credentials of their directors and promoters are also intriguing.
Going by the newspaper report, records of 2010-11 reveal that the directors of these investor companies included Gadkari's driver, accountant and two employees of Purti- one of which is known to be friend of his son, Nikhil.
Interestingly, Gadkari's driver, Manohar Panse is a director in five of Purti's investor companies. Between 2009 and 2011, Panse was a director in six other companies.
Meanwhile, Union Minister Veerappa Moily has reportedly asked the registrar of companies to look into allegations against Gadkari. "I have heard about the allegations, shall look into the allegations to see whether books are in order, he said.
Reacting to report, India Against Corruption member Arvind Kejriwal, who had alleged the BJP president got huge favours in land allotment from the Congress-NCP government in Maharashtra in return for "maintaining silence" on various scams, tweeted on Tuesday morning, "Read today's TOI for big expose against Nitin Gadkari. But would Congress and NCP Chief Sharad Pawar have courage to act against Gadkari? Or BJP-Congress bhai bhai?"
Gadkari is facing allegations of using shell companies to fund his business.