Gujarat's Panama Papers link? State-owned GSPC had "links" with controversial companies investigated by ICIJ

Subir Ghosh

By Rajiv Shah
In a new book, Subir Ghosh, Bangalore-based journalist, researcher and writer, quoting an ex-Government of India bureaucrat, has alleged that the former bluechip state public sector undertaking (PSU) Gujarat State Petroleum Corporation (GSPC) has had links with a company that was associated with dubious business concerns mentioned in the infamous Panama Papers.
Titled “Grand Illusion: The GSPC Disaster and the Gujarat Model”, the book’s writer is a co-author of the controversial “Gas Wars: Crony Capitalism and the Ambanis”, which has invited Rs 100 crore defamation suit from the Reliance Industries Ltd (RIL). The book was released in Ahmedabad on Thursday.
Published by Paranjoy Guha Thakurta, another co-author of “Gas Wars”, the book quotes former economic affairs secretary EAS Sarma as writing to the Enforcement Directorate (ED) “bringing in the Panama Papers angle”, says Ghosh, after the ED did not respond to an earlier plea to investigate into GSPC’s alliance with a private company, of which a former Gujarat minister known to be close to Prime Minister Narendra Modi was a “beneficiary.”
Sarma is quoted as saying, “I find more distressing facts about the Gujarat Natural Resources Ltd (GNRL). It was operating through six subsidiaries which include Heramec, Gorlas, Sigma Oil & Gas & Alkor Petro and Overseas.”
The book says, the GNRL, contrary to its misleading name, is a private limited company and not a state enterprise. Saurabh Patel, a former minister overseeing GSPC, was a “beneficiary investor in GNRL.” Patel, fighting Gujarat state assembly polls from Vadodara and a BJP chief ministerial aspirant, was mysteriously removed as state energy minister after Vijay Rupani took over the state’s reins of power last year.

Book further quotes Sarma as saying, “Both Heramec and Gorlas figure on the website of International Consortium of Investigative Journalists (ICIJ) and Panama Papers, as evident from the enclosed snapshot pictures of that website.” The book, however, does not provide the “enclosed shapshots”.
Sarma continued, “It is surprising that the Ministry of Petroleum and Natural Gas (MoPNG) should assign eight oil blocks to [the] GSPC knowing well that Heramec is a 30% partner in Kanawara, North Kathana, Allora, Unawa, North Balol and a partner with Oil and Natural Gas Commission (ONGC) in CB-ONN-2004/1, CB-ONN-2004/4 (see pages 71 and 72 of the enclosed GNRL annual report for 2015–16).”
Sarma underlined, “Assignment of such a large number of hydrocarbon blocks to GSPC/GNRL consortium was in itself highly questionable. [The] MoPNG should be asked to explain the circumstances that compelled it to allot these blocks to the Gujarat consortium.”
He added, “In turn, it is distressing as to how [the] GSPC, a state PSU, under the administrative control of Saurabh Patel, the minister, joined hands with such a highly questionable company, namely GNRL, and its subsidiaries and exposed itself to an enormous risk, which in turn got indirectly transmitted to MoPNG, knowing well that GNRL was only a family concern of the minister.”
The accusation comes amidst indications emerging that GSPC, which has reportedly gone bankrupt, is being bailed out by a Central PSU, the largest oil and gas producer, Oil and Natural Gas Corporation (ONGC), which has completed a Rs 7,738 crore acquisition of 80% stake in GSPC.
An earlier letter by Sarma to ED had said, “The annual report of GNRL shows how GSPC had allowed that company to have a share in several oil blocks it won in competitive bidding. GNRL was partly owned by Saurabh Patel, the minister in charge of the department in Gujarat.”
Sarma had added, “These findings raise very serious concerns about the way Saurabh Patel had a free hand in the then Modi government of Gujarat and how valuable oil blocks that belong to the people of India were bartered away to foreign nationals of questionable credentials.”

Comments

Avoidable Narmada floods: Modi birthday fete caused long wait for release of dam waters

Counterview Desk Top advocacy group, South Asia Network on Dams, Rivers and People (SANDRP), has accused the Sardar Sarovar dam operators for once again acting in an "unaccountable" manner, bringing "avoidable floods in downstream Gujarat." In a detailed analysis, SANDRP has said that the water level at the Golden Bridge in Bharuch approached the highest flood level on September 17, 2023, but these "could have been significantly lower and much less disastrous" both for the upstream and downstream areas of the dam, if the authorities had taken action earlier based on available actionable information.

Biden urged to warn Modi: US can declare India as worst religious freedom offender

By Our Representative During a Congressional Briefing held on Capitol Hill, Washington DC, Nadine Maenza, former Chair of the United States Commission on International Religious Freedom (USCIRF), has wondered why the Biden administration should raise issues of mass anti-minority mob violence -- particularly in Haryana and Manipur -- with Modi. Modi should be told that if such violence continues, the US will be “compelled by law” to designate India as one of the world’s worst offenders of religious freedom, she urged.

From 'Naatu-Naatu' to 'Nipah-Nipah': Dancing to the tune of western pipers?

By Dr Amitav Banerjee, MD* Some critics have commented that the ecstatic response of most Indians to the Oscar for the racy Indian song, “Naatu-Naatu” from the film, “RRR” reeks of sheer racism, insulting visuals and a colonial hangover. It was perhaps these ingredients that impressed the Academy of Motion Picture Arts and Sciences, one critic says.

Why iconic Urdu book stall, publishing house Maktaba Jamia died an 'unnatural' death

By Firoz Bakht Ahmed* We have all grown through the fragrant flavours and flairs of our childhood, one of them being our childhood mother-tongue historic magazines like, “Thakurmar Jhuli” (Bengali), “Khilauna”, Payam-e-Taleem" (Urdu), “Hans” (Marathi), “Parag” (Hindi), “Chitralekha” (Gujarati), “Chandamama” (Telugu), etc. I “drank” Urdu while suckling his mother and learnt the language not from any madrasa, school or college but from these publications only — my treasure trove!

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah* The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Asset managers hold '2.8 times more equity' in fossil fuel cos than in green investments

By Deepanwita Gita Niyogi* The world’s largest asset managers are far off track to meet the 2050 net zero commitments , a new study released by InfluenceMap , a London-based think tank working on climate change and sustainability, says. Released on August 1, the Asset Managers and Climate Change 2023 report by FinanceMap, a work stream of InfluenceMap, finds that the world’s largest asset managers have not improved on their climate performance in the past two years.

Evading primary responsibility, ONGC decides to invest Rs 15,000 crore in sick subsidiary

By NS Venkataraman* It is reported that Oil and Natural Gas Corporation (ONGC) will infuse about Rs 15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring exercise. ONGC currently holds 49.36 per cent stake in (OPaL), which operates a mega petrochemical plant at Dahej in Gujarat. GAIL (India) Ltd has 49.21 per cent interest and Gujarat State Petrochemical Corporation (GSPC) has the remaining 1.43 per cent.

Why Bangladesh is achieving 'new heights' amidst economic collapse of Pakistan

By Sufian Siddique* Pakistan's economy is on the brink of bankruptcy like Sri Lanka's. Pakistan's foreign exchange reserves have fallen below $3 billion. They have asked the IMF for a 'bailout loan' a long time ago, but the IMF is trying to impose strict conditions that Pakistan's current ruling coalition has no capacity to meet. Even China and Saudi Arabia, Pakistan's long-standing loyal friends, are now reluctant to shoulder Pakistan's burden.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Sales, profits of Indian firms 'deteriorate', yet no significant increase in cost pressures

By Our Representative The Indian Institute of Management-Ahmedabad's (IIM-A's) latest Business Inflation Expectations Survey (BIES), a monthly exercise, has said that while cost perceptions data does not indicate significant increase of cost pressures, sales and profits of the Indian firms have deteriorated.

Search This Blog