Skip to main content

GSFC's Rs 250 crore 'scam': Investment in Canadian firm with no returns. Who cares?

By Rajiv Shah 
A top Gujarat government insider phoned me up the other day, reminding me of a story we carried in Counterview early this year regarding how a Gujarat government public sector undertaking (PSU), Gujarat State Fertilisers and Chemicals (GSFC), “transferred” Rs 250 crore to a Canadian firm Karnalyte for a potash mining project in Canada, but the project never took off, hence whole money has “gone waste.” 
Written by by AK Luke, a retired IAS bureaucrat and a former MD of GSFC, referring to my article, this insider phoned me up to inform me that the Counterview story was copy-pasted in a little-known site called Kractivism. On looking up, I found, indeed, Luke’s story had been copy-pasted, but the site, run by a rights activist, did not have the courtesy to acknowledge the original source.
Be that as it may, the state insider wondered why such a big news, involving Rs 250 crore “scam” had skipped top newspapers in Gujarat, forget about India. He said, normally, when such “exposures” happen, opposition would pounce on them and make a big issue against those in power – in the present case it is the ruling BJP.
I told him about the state of affairs with Congress in Gujarat, recalling a story that I did in 2007 for the Times of India. I had quoted from a book called “Karmayog”, authored by Modi – it was actually a collection of his speeches before the state bureaucrats attending Chintan Shibirs (Study Circles, loosely). In this book Modi had said that manual scavengers as true karmayogis “experienced” spirituality while doing the dirty work in gutters.
Soon after the story was published, I was told, its translation appeared and there was a demonstration in Tamil Nadu, where Modi’s effigy was burned. Taking the cue, about 5,000 printed copies of the book – which had not been released yet – were withdrawn. Since polls were around, I asked Congress leaders whether they would like to make this an issue against BJP.
However, they didn’t care, hence I forgot about it. A couple of years later, Pravin Rashtrapal, a Congress Rajya Sabha MP from Gujarat and a Dalit leader, raised the issue in Parliament, citing my story. It was at this point that the Congress leaders, ranging from Ahmed Patel and Ranjit Surjewala, woke up and approached me to have the book – only to be told that I had returned it back to the person in the chief minster’s office who had given it to me.
I told all this to this to the state insider only to apprise him of how very indifferent the opposition Congress in Gujarat has been issues. I added, surely, Rs 250 crore “scam” would also not interest Congress, but this insider wasn't convinced: “Well, as for manual scavengers, such is the mindset, these leaders would think this is their job, hence it does not become a political issue. But they would surely be interested in any scam.”
Meanwhile, I wondered how was it that Rs 250 was “invested” in the Canadian firm, but there was no return. The insider offered to me this reply: “GSFC, like some other PSUs, is a listed company, so politicians play such tricks that the share prices of the PSU go up, and they are able to earn huge amount.”
This is what he suspected what would have happened: “Before the Rs 250 crore investment was made, I am sure, they would have bought handsome amount of shares. Once the investment was made, the share prices of GSFC zoomed. This made them sell off their shares at a very good price. This is what I call ‘pump and bump’ method adopted by investors.”

Comments

TRENDING

'Draconian' Kerala health law follows WHO diktat: Govt readies to take harsh measures

By Dr Maya Valecha*  The Governor of Kerala has signed the Kerala Public Health Bill, which essentially reverses the people’s campaign in healthcare services in Kerala for decentralisation. The campaign had led to relinquishing of state powers in 1996, resulting in improvement of health parameters in Kerala. Instead, now, enforcement of law through the exercise of power, fines, etc., and the implementation of protocol during the pandemic, are considered of prime importance.

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. 

Bihar rural women entrepreneurs witness 50% surge in awareness about renewal energy

By Mignonne Dsouza*  An endline survey conducted under the Bolega Bihar initiative revealed a significant increase in awareness of renewable energy among women, rising from 25% to 76% in Nalanda and Gaya. Renu Kumari, a 34-year-old entrepreneur from Nalanda, Bihar, operates a village eatery that serves as the primary source of income for her family, including her husband and five children. However, a significant portion of her profits was being directed toward covering monthly electricity expenses that usually reach Rs 2,000. 

Work with Rajasthan's camel herders: German scientist wins World Cookbook Award 2023

By Rosamma Thomas*  Gourmand World Cookbook Awards are the only awards for international food culture. This year, German scientist  Ilse Kohler Rollefson , founder of Camel Charisma, the first of India’s camel dairies, in Pali district of Rajasthan, won the award for her work with camel herders in Rajasthan, and for preparing for the UN International Year of Camelids, 2024. 

Reject WHO's 'draconian' amendments on pandemic: Citizens to Union Health Minister

By Our Representative  Several concerned Indian citizens have written to the Union Health Minister to reject amendments to the International Health Regulations (IHR) of the World Health Organization (WHO) adopted during the 75th World Health Assembly (WHA75) in May 2022, apprehending this will make the signatories surrender their autonomy to the “unelected, unaccountable and the whimsical WHO in case of any future ‘pandemics’.”

Golwalkar's views on tricolour, martyrs, minorities, caste as per RSS archives

By Shamsul Islam*  First time in the history of independent India, the in-charge minister of the Cultural Ministry in the current Modi government, Prahlad Singh Patel, has glorified MS Golwalkar, second supremo of the RSS and the most prominent ideologue of the RSS till date, on his birth anniversary, February 19. In a tweet he wrote : “Remembering a great thinker, scholar, and remarkable leader #MSGolwalkar on his birth anniversary. His thoughts will remain a source of inspiration & continue to guide generations.”

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Why is electricity tariff going up in India? Who is the beneficiary? A random reflection

By Thomas Franco*  Union Ministry of Power has used its power under Section 11 of the Electricity Act, 2003 to force States to import coal which has led to an increase in the cost of electricity production and every consumer is paying a higher tariff. In India, almost everybody from farmers to MSMEs are consumers of electricity.

Deplorable, influential sections 'still believe' burning coal is essential indefinitely

By Shankar Sharma*  Some of the recent developments in the power sector, as some  recent news items show, should be of massive relevance/ interest to our policy makers in India. Assuming that our authorities are officially mandated/ committed to maintain a holistic approach to the overall welfare of all sections of our society, including the flora, fauna and general environment, these developments/ experiences from different parts of the globe should be clear pointers to the sustainable energy pathways for our people.

Environmental cost of Green Revolution: India world’s second-highest fertilizer importer

By Glenn Davis Stone*  Feeding a growing world population has been a serious concern for decades, but today there are new causes for alarm. Floods, heat waves and other weather extremes are making agriculture increasingly precarious, especially in the Global South .