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 Taking the cue, about 5,000 printed copies of the book – which had not been released yet – were withdrawn.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

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das  The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman*  The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative   Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra   There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

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 India must urgently strengthen its policies for an ageing population

By Bharat Dogra   A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor*  Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari  The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.