Banking scam worth Rs 2,654 crore alleged involving Gujarat's "crony" businessman having links with senior minister

By A Representative
In a fresh "exposure", the Indian National Congress has come with a new scam, in which, it days, a senior minister in the Gujarat government known to be close to Prime Minister Narendra Modi and a Vadodara-based businessman "blessed" by Modi are "involved" in "duping" 11 banks to the tune of Rs 2,654.4 crore.
Accusing the businessman of being involved in ‘murky dealings’, hidden under ‘cultural fests’ and crony businesses,Congress spokesperson Pawan Khera has named a senior minister in Gujarat's Vijay Rupani facilitated the scam to happen, adding, "active connections" of this businessman with the BJP have already been revealed through numerous photographs on social media.
Thus, Khera says, this businessman has been photographing, among others, with Modi, his railway (former power) minister) Piyush Goyal, former Gujarat chief minister Anandiben Patel and present chief minister Vijay Rupani, and of course the senior minister with whom he is "linked."
Giving details, Khera, even as releasing documents and photographs, alleges in a note sent to media, the company run by this businessman "fraudulently" availed credit facilities "from a consortium of 11 banks, with Axis Bank being the lead bank, as it clear from a CBI FIR, by submitting false stock statements, extensively utilizing cash credit limits for obtaining large number of Letters of Credit."
Claiming that the company got bankrupt in 2016, leaving behind an outstanding loan of ₹2,654.4 crore, Khera says, it's owner has been "one of the chief financier of the BJP in Vadodara", adding, the BJP government in the state showered "public money" on Vadfest, "a large cultural fest in Vadodara where crores were spent to invite ‘A’ rank celebrities and film stars".
Organized in 2016 by this businessman, Khera says, "Never in the history, had a state created a Special Purpose Vehicle (SPV) through its tourism department to fund a specific cultural festival! The SPV, known as Vadodara International Art and Culture Festival Authority, was headed by the senior minister, who ensured they this businessman became chief organizer of the festival."
Ironically, the company this businessman owns, contends Khera, "primarily manufactures electric cables and equipment. At the expense of public money both organized a five-day global export festival in Vadodara. Then power minister Piyush Goyal and chief minister Anandiben Patel attended this festival, where 140 acres of forest land in Vadodara was converted in an exhibition centre and the state government spent crores of money."
Insisting that this businessman is "no stranger to financial frauds", Khera says, "In March 2015, he was arrested and released on bail by/the Central Excise for alleged fraudulent misuse of CenVAT credit and evading Excise Duty worth Rs 40 crore. In July 2016, another complaint was filed for allegedly selling off shares owned by a woman."
Khera accuses the company of submitting "false stock statements, extensively utilizing cash credit limits for obtaining large number of Letters of Credit. About 1,000 such Letter of Credit (LoCs) issued by Bank of India alone devolved, which included at least 16 LoCs amounting to Rs 110.79 crore issued in the name of another company, owned by this businessman and his family members.
The company, says Khera, "managed to get the credit facilities despite appearing in the Reserve Bank of India's Defaulters List and ECGC Caution List at the time of initial sanction of Credit Limits by the Consortium." He adds, the company accounts in Bank of India and Bank of Baroda "were declared NPA on February 16, 2016. Other banks declared company's accounts NPA from December 2017."

Comments

Mergers and privatisation: The Finance Minister’s misguided banking agenda

By Thomas Franco The Finance Minister has once again revived talk of merging two or three large public sector banks to make them globally competitive. Reports also suggest that the government is considering appointing Managing Directors in public sector banks from the private sector. Both moves would strike at the heart of India’s public banking system . Privatisation undermines the constitutional vision of social and economic justice, and such steps could lead to irreversible damage.

Political misfires in Bihar: Reasons behind the Opposition's self-inflicted defeat

By Vidya Bhushan Rawat* The Bihar Vidhansabha Election 2025 verdict is out. I maintained deliberate silence about the growing tribe of “social media” experts and their opinions. Lately, these do not fascinate me. Anyone forming an opinion solely on the basis of these “experts” lives in a fool’s paradise. I do not watch them, nor do I follow them on Twitter. I stayed away partly because I was not certain of a MahaGathbandhan victory, even though I wanted it. But my personal preference is not the issue here. The parties disappointed.

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

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

Nalanda mahavihara By Rajiv Shah 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".

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Whither GIFT City push? Housing supply soars in Mumbai, Hyderabad, Pune, not Ahmedabad

By Rajiv Shah A new report by a firm describing itself as a "digital real estate transaction and advisory platform," Proptiger , states that the Mumbai Metropolitan Region (MMR) has been the largest contributor to housing units among India's top eight cities currently experiencing a real estate boom. Accounting for 26.9% of all new launches, it is followed by Pune with 18.7% and Hyderabad with 13.6%. These three cities collectively represented 59.2% of the new inventory introduced during the third quarter (July to September 2025), which is the focus of the report’s analysis.

Only one Indian national park rated ‘good’ by IUCN: Concerns over ecological governance

By A Representative Environmental policy expert Shankar Sharma has written to the Ministry of Environment, Forest and Climate Change (MoEF&CC) and its affiliated institutions, expressing grave concern over India’s deteriorating ecological health. Citing the International Union for Conservation of Nature (IUCN)’s latest global review, which found that only Khangchendzonga National Park received a “Good” rating among 107 national parks, Sharma warned that the findings reveal a “serious concern for the overall health of the country’s flora, fauna, and environment.”

Citizens’ group warns of disenfranchisement in Gujarat SIR exercise, holds sit-in dharna

By A Representative The Gujarat unit of the Centre for Protection of Democratic Rights and Secularism (CPDRS) has held a sit-in dharna near Town Hall in Ahmedabad to protest against the Special Intensive Revision (SIR) of the voter list being carried out by the Election Commission in the state.

Search This Blog