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

US-China truce temporary, larger trade war between two economies to continue

By Prabir Purkayastha The Trump-Xi meeting in Busan, South Korea on 30 October 2025 may have brought about a temporary relief in the US-China trade war. But unless we see the fine print of the agreement, it is difficult to assess whether this is a temporary truce or the beginning of a real rapprochement between the two nations. The jury is still out on that one and we will wait for a better understanding of what has really been achieved in Busan.

When growth shrinks people: Capitalism and the biological decline of the U.S. population

By Bhabani Shankar Nayak* Critically acclaimed Hungarian-American economic historian and distinguished scholar of economic anthropometric history, Prof. John Komlos (Professor Emeritus, University of Munich), who pioneered the study of the history of human height and weight, has published an article titled “The Decline in the Physical Stature of the U.S. Population Parallels the Diminution in the Rate of Increase in Life Expectancy” on October 31, 2025, in the forthcoming issue of Social Science & Medicine (SSM) – Population Health, Volume 32, December 2025. The findings of the article present a damning critique of the barbaric nature of capitalism and its detrimental impact on human health, highlighting that the average height of Americans began to decline during the era of free-market capitalism. The study draws on an analysis of 17 surveys from the National Health and Nutrition Examination Survey (NHANES), conducted by the U.S. Centers for Disease Control and Prevention (...

Is vaccine the Voldemort of modern medicine to be left undiscussed, unscrutinised?

By Deepika* Sridhar Vembu of Zoho stirred up an internet storm by tweeting about the possible link of autism to the growing number of vaccines given to children in India . He had only asked the parents to analyse the connection but doctors, so called public health experts vehemently started opposing Vembu's claims, labeling them "dangerous misinformation" that could erode “vaccine trust”!

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria* Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

Govt claims about 'revolutionary' rice varieties raise eyebrows: SC order reserved since Jan '24

By Rosamma Thomas * In a matter of grave importance for agriculture, public health awaits Supreme Court ruling, even as top Government of India bureaucrats stand accused of “willful and deliberate disobedience” of the top court. While a contempt petition filed by Aruna Rodrigues , lead petitioner in the Genetic Modification (GM) of crops matter remains pending in the Supreme Court since July 2025, the Union ministry of agriculture asserts that two home-grown gene edited rice varieties are of superior quality, and hold potential for “revolutionary changes in higher production, climate adaptability, and water conservation.” In May 2025, the Press Information Bureau released a press release stating that a “historic milestone” had been reached, under the leadership of Prime Minister Narendra Modi ; the new varieties, DRR Rice 100 (Kamla) and Pusa DST Rice 1 , the press release stated, offer both benefits – increased production and environmental conservation.

Gujarat civil society to move Supreme Court against controversial electoral roll revision

By Rajiv Shah A recent, well-attended meeting of Gujarat civil society activists in Ahmedabad , held to discuss the impact of the ongoing Special Intensive Revision (SIR) of electoral rolls, has decided to file a petition in the Supreme Court against the controversial exercise initiated by the Election Commission of India (ECI) across the country. Announcing this, senior High Court advocate Anand Yagnik , who heads the Gujarat chapter of the People’s Union for Civil Liberties (PUCL), said that a committee has already been formed to examine the pros and cons of SIR. “While the SIR exercise began in Gujarat on November 4 and is scheduled to continue for a month, we will file a supporting petition in the case against SIR in the Gujarat High Court or the Supreme Court after observing how it proceeds in the state,” he said. Yagnik’s announcement followed senior advocate Shahrukh Alam —who is arguing the SIR case in the Supreme Court—urging Gujarat’s civil society to also file ...

Banks, investors pour $52 billion into metallurgical coal expansion despite global climate pledges

By A Representative A new report by the German environmental and human rights NGO Urgewald has revealed that banks and institutional investors have poured nearly $52 billion into the expansion of metallurgical coal, or “met coal,” despite global commitments to phase out coal financing. Between 2022 and 2024, banks provided $21.96 billion in loans and underwriting to met coal developers, while investors held $30.23 billion in securities of companies expanding coal mining operations. The report, Still Burning: How Banks and Investors Fuel Met Coal Expansion, warns that loopholes in coal exit policies have allowed continued support for coal used in steelmaking — a sector responsible for about 11% of global CO₂ emissions.

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".

Trump escalates threats of war against Venezuela, as millions in US set to lose essential benefits

By Manolo De Los Santos The United States government is in the grips of one of its longest-running funding gaps in history. The ongoing government shutdown has already stretched beyond 30 days and now, the food security of millions of Americans is at risk as the funding to the Supplemental Nutrition Assistance Program (SNAP) is drying up and Trump officials have refused to tap into contingency funds . Approximately 42 million individuals per month rely on SNAP benefits and are set to lose them beginning on November 1.

Search This Blog