Tuesday 15 January 2013

Behind Robert Vadra’s fortune, a maze of questions by Shalini Singh


Property empire was built on soft loans handed out in unusual circumstances, documents show
In February, as rumours of the ambitions of Congress president Sonia Gandhi’s son-in-law swirled amidst the heat and dust of the election campaign in Uttar Pradesh, her daughter Priyanka moved to scotch speculation about Robert Vadra’s possible political future.

“He’s a successful businessman,” the younger Ms. Gandhi said of her husband, “who is not interested in changing his occupation.”

Even though Mr. Vadra has increasingly emerged in the public eye, there has been little information on just how successful a businessman he is — and how his empire was built.

Last year, The Economic Times first wrote about his “low-key entry into the real estate business” with the help of DLF Ltd, India’s largest commercial property developer. And on Friday, Arvind Kejriwal and Prashant Bhushan of India Against Corruption (IAC) released documents which showed how Mr. Vadra has acquired land assets in and around the National Capital Region worth hundreds of crores of rupees, sometimes at prices below market value — funded by interest-free loans disbursed to him by DLF and other companies for no apparent reason.

Though the documents reveal no illegality or impropriety on the part of Mr. Vadra, they do raise the question of why DLF — which is a publicly traded company — would enter into multiple business transactions with him on terms that appear highly preferential. The company on Saturday issued a lengthy press release setting out its side of the story but questions of corporate governance remain and minority shareholders are likely to ask the company for the rationale behind its arrangement with Ms. Sonia Gandhi’s son-in-law and whether similar soft loans (or “advances” as DLF prefers to call them) and deals have been transacted with companies owned by other prominent individuals. The answer to the second question may help explain why a normally feisty Opposition has been remarkably silent on the DLF-Vadra connection since the story first broke in 2011.

In 1997, the year Mr. Vadra married Priyanka Gandhi, he incorporated his first, modest business — Artex, which dealt with brass handicrafts and fashion accessories. From 2007, there was a surge in his activities. Inside of a year, he founded five other ventures, spanning the real estate, hospitality and trading sectors.

Ms. Gandhi maintained a distance from these companies: in 2008, she dissociated herself from the sole business in which she was involved, aircraft charter firm Blue Breeze Trading.

From balance sheets and directors’ reports released by IAC and additional papers obtained by The Hindu, which relate to six group companies, it is clear that Mr. Vadra’s rise was meteoric. In 2007-2008, his companies started out with promoter funds of just Rs. 50 lakh.

However, the companies succeeded in acquiring 29 high-value properties by 2010, armed with loans and advances of Rs. 80 crore from DLF,… as well as Bedarwals Infra Projects, Nikhil International and VRS Infrastructure. These included a Rs. 31.7 crore acquisition of a 50 per cent share of Saket Courtyard by 2010, armed with loans and advances of Rs. 80 crore from DLF, as well as Bedarwals Infra Projects, Nikhil International and VRS Infrastructure.

These included a Rs. 31.7 crore acquisition of a 50 per cent share of Saket Courtyard Hospitality, which owns the 114-bed Hilton Garden Hotel in New Delhi; a 10,000 square foot penthouse, number B1115, at the DLF Aralias complex for Rs 89.41 lakh; 7 apartments in DLF Magnolia for Rs. 5.2 crore; apartments for Rs. 5.06 crore at DLF Capital Greens; and a DLF-owned plot in Delhi’s ultra-posh Greater Kailash II area for Rs. 1.21 crore. Though DLF’s press release said some of these prices were “completely incorrect,” the investment numbers are all stated in the balance sheets filed by Mr. Vadra’s companies with the Registrar of Companies.

Then, at the end of 2010, Mr. Vadra’s companies also picked up a bouquet of rural properties: 160.62 acres of agricultural land in Bikaner for Rs. 1.02 crore, and Rs. 2.43 crore for an additional 5 parcels of land of unknown acreage; land at Manesar, on Delhi’s fringes, for Rs. 15.38 crore; land at Palwal for Rs. 42 lakh, land at Hayyatpur, in Gurgaon, for roughly Rs. 4 crore; land at Hasanpur for Rs. 76.07 lakh; land at Mewat for Rs. 95.42 lakh; unidentified agricultural land for Rs. 69.09 lakh; and two ‘other real estate bookings’ worth Rs. 9 lakh.

From just Rs. 7.95 crore in fiscal 2008, Vadra’s fixed assets and investments grew to Rs 17.18 crore in fiscal 2009, jumping a staggering 350 per cent in a single year to Rs 60.53 crore in fiscal 2010, the year in which most of these properties were acquired with promoter funds of just Rs. 50 lakh along with interest of Rs. 255.46 lakh earned on advances and loans and zero group activity or profitability.

Despite the high market value of these listed assets (properties), though, the declared investment portfolio in Mr. Vadra’s balance sheets remained a meagre Rs. 71 crore at the end of fiscal 2010 with accumulated group losses of Rs. 3 crore.

Mr. Vadra’s companies did not respond to e-mails sent by The Hindu seeking clarifications on the details of these transactions. In particular, it remains unclear why DLF and other major corporations would have made him large loans, since this is not in the nature of their business. Nor did Mr. Vadra’s companies have any apparent prior specialisation in real estate business. 

Financial wizardry

The financial information available from the balance sheets and directors’ reports of Mr. Vadra’s companies — Sky Light Hospitality, Sky Light Realty, Blue Breeze Trading, Artex, Real Earth Estates and North India IT Parks — raise hard questions about what business it is they actually do, and how this business is conducted.

Each of the companies has 268, Sukhdev Vihar, New Delhi, as its common address, and Mr. Vadra and his mother Maureen Vadra as directors. Mr. Vadra, the documents show, receives remuneration of Rs. 60 lakh per annum from just one company, Sky Light Realty. The payment, the company’s auditor states is “remuneration in excess of the limit prescribed under section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules 1975.”

There are no other employee costs in the books, either to his mother or to others. However, in the documents, both directors “place on record their deep sense of appreciation for the committed services of executives, staff and workers of the company.”

Strangely, while assets balloon in each subsequent balance sheet, there is no account of the corresponding enhancement of visible business activity. For example, the balance sheets raise a current liability of Rs. 50 crore against the Manesar land, though it was registered for just Rs.15.38 crore in the same financial year, defying all commercial and financial prudence and raising doubts about whether this was an income rather than a current liability.

A senior chartered accountant told The Hindu on condition of anonymity, given the individuals involved, that masking incomes as loans/current liabilities in this manner is an unorthodox accounting device. “Using short term funding of this kind to create long-term assets defies financial prudence as it constitutes a high business risk, unless they are not really ‘current liabilities’ and are not payable in the short term, which means they are nothing but incomes which have been disguised,” he said. Vadra’s auditors consistently overlook this in all six firms, while accounting firm Khurana & Khurana in its Auditors Report for Real Earth Estates Pvt. Ltd. for the year 2010, actually opts to gloss over this by stating: “Based on the information and explanation given to and on an overall examination of the balance sheet of the company, in our opinion, there are no funds raised on short term basis which have been used for long term investment.”

The auditor’s accounting rigor comes into further question with its statement that according to the information and explanations given to us, the company has, during the year, not granted any loans, secured or unsecured to companies, firm or other parties covered in the register maintained under section 31 of the Companies Act 1956, excepting the advances under business obligation accordingly paragraphs 4 (iii) (a) (b) (c) and (d) of the order are not applicable. However, the balance sheet shows loans and advances of Rs 2.89 crore for the company in 2010.

Many such loans, which reflect as total current liability of Rs. 72 crore in the accounts, are invested in long-term assets like land. Curiously, no one appears to be pressing for the return of these loans — which are, according to the documents, interest-free.

Additionally, all of Mr. Vadra’s companies show interest income from fixed deposits, claiming tax deducted at source for this interest without accounting for the fixed deposits themselves in the balance sheets. The six companies’ profitability, which grew from zero in 2007-8 to Rs. 20.94 lakh in 2008-9 to Rs. 255.46 lakh in 2009-10, was not from any business activity in these companies but purely from interest on 23 elusive fixed deposits amounting to roughly Rs. 5 crore.

There are other unexplained gaps in the financial information. As of March 31, 2010, the group profit and loss account shows that only Sky Light Realty made a profit, and that too in one single year. Yet, while the others show losses, they continue to make investments. This profit of Rs. 244.98 lakh was despite a complete absence of business activity or liquidation/reduction of fixed assets, investments or other bookings. However, the accumulated losses of Rs. 3 crore from the other 5 firms in the RV Group’s 2010 balance sheet wipe out Vadra’s capital and reserves, raising questions about his ability to buy so many high value properties with zero capital.
 
DLF’s fortunes

Perhaps the key to the relationship could lie in DLF’s troubled fortunes since 2008 — the very time its dealings with Mr. Vadra acquired significant scale. According to a March 1, 2012 report by the respected Veritas Investment Research Corporation, DLF Ltd is an organisation under duress, with its management scrambling to consummate assets sales, rationalize its land bank and divest non-core operations.

Since a May, 2007 Initial Public Offering, which sold at Rs. 525 per share, the stock price declined by 46 per cent in March 2012 compared to a roughly 30 per cent gain in the Sensex over the same period with the stock presently trading at Rs. 241.80, a steep 54.13 per cent dip.

Veritas points to questionable related-party transactions, aggressive and conflicting accounting policies, self-enrichment and inability to deliver on promises, and a balance sheet stretched to the limit, with no free cash flow and no credible plan to de-lever its balance sheet. “If your investment decision incorporates management integrity, then bypassing DLF will be an easy choice,” the Veritas report states.

In addition, Veritas does “not believe the disclosed book equity and asset base of the company,” stating that via its dealings (merger) with DLF Assets Ltd (DAL), from FY 2007 to FY 2011, the company inflated sales by at least Rs. 11,236 crore and its profit before tax by Rs. 7,233 crore.

A slowing real estate market in a high inflation environment and over-exposure to Gurgaon — among India’s most speculative real estate markets — is further expected to create tremendous pressure on the company’s balance sheet. “In the end, we believe DLF will seek assistance from financial institutions to restructure its loans,” the report affirms, urging investors not to buy DLF stock. DLF dismissed the report as “mischievous and presumptive.”

Mr. Vadra himself has attributed his brass-to-gold success story to hard work—and a little help from “family” friends like K.P. Singh, the chairman of the DLF Group. However, Mr. Vadra has strongly denied taking any favours from DLF in the past. “I have a good understanding with DLF. Our children are friends, we are friends. They are seasoned businessmen. They are not daft… They don't need me to enhance them. They’ve existed for years,” he told The Economic Times in March 2011.

Indeed, in January 2002, he made his distaste for favour-seeking capitalism public, dissociating himself from his brother and father, alleging that they were promising jobs and favours using his name and association with the Gandhi family. His father responded by suing him for defamation. 

Hard work Mr. Vadra may well have put into building his property empire. But the help he received from friends like DLF suggests at least a part of his success flowed from the willingness of others to bet on the outcome of his enterprise. 

 http://www.thehindu.com/news/national/behind-robert-vadras-fortune-a-maze-of-questions/article3975214.ece?homepage=true

Friday 13 April 2012

President Pratibha Patil grabs 2,61,000 sq ft of land meant for soldiers and officers


 Vinita Deshmukh

President Pratibha Patil, Khadki, bunglow, defense land




An RTI activist from Pune, Col Suresh Patil (retd) remarked, “Dr Rajendra Prasad donated his land to Vinoba Bhave and here we have Pratibhatai Patil taking away the land for of her own men

Consider this: Eight hundred jawans of the Territorial Army (TA) are presently posted in Pune but there is residential accommodation for only 14. This being a family posting (a bonanza offered after a harsh field station posting), each jawan desires to bring his family, otherwise left behind in his hometown, when he is guarding the nation’s frontiers, often in a challenging geographical terrain. However, due to lack of official accommodation, a jawan is asked by his seniors to refrain from getting his family to Pune. Those jawans who decide to get their families to Pune nevertheless, live in slum-like conditions in one-room dwellings, near the Pune cantonment, with no drinking water facility.  In addition, paucity of residential accommodation for hundreds of soldiers and officers in the Indian Armed Forces in Pune is causing great inconvenience to the families.

Now consider this: Pratibha Patil, president of India and the supreme commander of the armed forces is building a palatial home for herself on a whopping 261,000 sq ft of land in Khadki Cantonment in Pune (out of which the bungalow occupies about 4,500 sq ft). The land belongs to the defence. It will now have a fortified home, the construction of which is nearing completion.

The president is eligible for only 2,000 sq ft bungalow in any part of the country if he/she wants the government to hire a home for him/her, after retirement. Otherwise, he/she is entitled to a government-owned Class V bungalow (around 4,500 sq ft) if it is available.  He/she is not eligible to build a home on government land. Some former defence personnel from Pune who are campaigning against this illegality are taking strong objections to the fact that Ms Patil is constructing her house on government land, when hundreds of jawans and officers are facing official accommodation crisis.

This revelation under the Right to Information (RTI) Act was procured by Col Suresh Patil (retd) and founder of Justice for Jawans (JFJ), RTI activist Anup Awasthi and Indian Ex-servicemen Movement (IESM) who are campaigning against Ms Patil’s ‘snatching’ away land meant for soldiers and officers.

The RTI application was sent to the president’s office. As per the reply, under the President’s Emoluments and Pension Act, 1951 and rules framed under the President’s Pension Rule, 1962, “where suitable government residence is not available for allotment to a retired president, the size of the residence to be taken on lease to be provided to a retired president shall have a living area not exceeding 2,000 sq ft”.

“A place where government-owned accommodation is allotted to a retired president, the size of the residence is comparable to a residence allotted to a minister in the Union council of ministers and if the highest type of government residence available as a particular place is less in size than a residence allotted to a minister in the Union council of ministers, the highest type of accommodation available at that place shall be allotted to the ex-president. At present, a minister is entitled to a plinth area of the bungalow as 4,498 sq ft”.

The reply under RTI also stated that she is eligible to drinking water and electricity supply, free of cost, throughout her life.

States commander Ravindra Pathak, member of the IESM and who invoked the RTI, “taking away more than 2.5 lakh sq ft of defence land is sheer looting by Ms Patil. We are sending a letter to the Chief Justice of the Supreme Court to take up the case suo moto. We have no money to pay for lawyers’ expenses.”

Col Suresh Patil (retd) elaborates, “Two defence bungalows have been pulled down to make way for Ms Patil’s bungalow and the vast expanse of land, over 2 lakh sq ft has been fortified for her. We are saying that let her keep the 2,000 sq ft she is entitled to and give away the remaining land for constructing official accommodation for soldiers and officers. Otherwise, there are numerous bungalows in the three cantonments of Pune and she could have been given accommodation in one of these.”

No other president has made such claims for personal gains, alleges Col Patil. He adds says, “Dr Rajendra Prasad donated his land to Vinoba Bhave and here we have Pratibhatai Patil taking away the land for of her own men—after all she is the supreme commander of the armed forces.”

RTI in this case provided information but who’s going to tie the proverbial bell round the cat? Hence, we need a strong anti-corruption law.

(Vinita Deshmukh is consulting editor of Moneylife. She is also an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte. She can be reached at vinitapune@gmail.com)

 http://moneylife.in/article/president-pratibha-patil-grabs-261000-sq-ft-of-land-meant-for-soldiers-and-officers/24929.html

Friday 24 February 2012

Andhra Pradesh minister used exam centre to host son's wedding



Hyderabad:  Dharmana Prasad Rao, minister for roads and buildings minister in Andhra Pradesh, is facing testing times over an exam centre. It is alleged that he misused his authority and took over a government degree college in Srikakulam for his son's wedding reception. The change in venue forced local candidates to travel long distances to sit for an exam for the post of village administrative official.

Mr Rao, however, rubbishes all allegations, saying, "What are these wild allegations? My son's wedding reception dates were fixed before the exam dates. No exam centre was cancelled."

Andhra Pradesh chief minister N Kiran Kumar Reddy has also jumped to his minister's defence. Amid demands of Mr Rao's resignation, Mr Reddy says his cabinet colleague has done no wrong and it is much ado about nothing.

"I condemn this attempt to politicise a small issue and create controversy when a colleague is having a happy occasion in his family," Mr Reddy said.

However, civil society activists and the opposition parties have slammed Mr Rao over the alleged abuse of power. They allege this kind of misuse of authority has become very common and the chief minister should ask the minister to quit over the embarrassment.

One of the exam candidates met with an accident on her way to the exam centre, which led to the death of her father, who was accompanying her.

Lanco in Rs 13k cr scam!! : corners 40% contracts in solar projects : CSE



"The(se) guidelines were blatantly flouted by Lanco Infratech. This company floated front companies and grabbed no less than nine projects worth 235 mw. This is about 40% of the 620 mw worth of projects auctioned by the government during the first batch of the first phase of the Solar Mission," CSE said.


New Delhi: In violation of norms laid down by the government, a single company, AP-based Lanco Infratech, has allegedly cornered 40% of the contracts bid out for the first phase of the National Solar Mission, garnering 235 mw worth projects with assured revenue of Rs 13,000 crore over the next 25 years including a large subsidy that the consumers will end up paying.

Delhi-based Centre for Science and Environment (CSE) last week released documents showing how the company allegedly created fronts to side-step the rules and win much more than the 105 mw worth contracts it was legally allowed to. The Jawaharlal Nehru National Solar Mission is meant to install 20,000 mw of grid-connected solar power by 2022.

In its first phase, 1,000 mw worth of projects were to be bid out by 2013. In the first batch of the bidding process, 150 mw of solar PV plants and 470 mw of solar thermal power plants were bid out with no company (including its affiliates, subsidiaries etc) permitted to bid for more than 5 mw of solar PV and 100 mw of solar thermal each.

"These guidelines were blatantly flouted by Lanco Infratech. This company floated front companies and grabbed no less than nine projects worth 235 mw.

This is about 40% of the 620 mw worth of projects auctioned by the government during the first batch of the first phase of the Solar Mission," CSE said. The documents released by CSE showed that the companies' balance sheets were beefed up just in time to meet the bid requirements.

The final date was also delayed to adjust one particular case. The bids were almost identical with a 5 paise difference in the discount rate proposed.

CSE said besides the two disclosed Lanco group companies, "all (other) seven companies had Rs 1 lakh or Rs 10 lakh in equity, no assets or reserves from the past; all were created for the bidding process; all companies increased their authorized amount of shares and then issued preference shares on the same day (December 31, 2010); the shares did not go to Lanco directly, but showed up in its annual report. Then all Lanco and front companies bid for the PV projects in a unified fashion, quoting similar tariffs with 5 paise jump between each bid."

CSE gave details of how project reports of all projects were identical and the land agreements for the legally distinct and differently owned projects were signed with the government by one person -- a Lanco employee.

It claimed that seven more companies besides those shown as bidders had direct links with Lanco -- "some had Lanco employees and their family members as directors, while others have strong commercial ties to the company. Lanco's own annual report indicates that all the seven are firmly in its control.”

Six of these companies initially proposed one site and the two proposals for solar thermal were proposed at one site. But the eventual site for all none projects ended up contiguous to each other in one single village Askandra in Jaisalmer. Lanco also got the Engineering Procurement and Construction contract for all the projects.

While the ministry of new and renewable energy is the regulatory ministry, the entire operation comes under a subsidiary of NTPC -- NTPC Vidyut Vyapar Nigam Limited (NVVN).

When contacted, MNRES secretary Girish Pradhan sasid, "The entire process is being done by NVVN, we only set the rules. Now that the information has come out, we will investigate it in depth and no violation or deviation from norms will be tolerated." An NVVN statement said, "There is no bar in the guidelines for a company to be EPC contractor in more than one project. After signing the power purchase agreements, we noted that controlling shareholding in some of the companies appeared to have changed which was in violation of guidelines.

After obtaining legal opinion on the issue, we issued notice of default to such companies. Companies stated that they had not violated the provisions of guidelines and it was a matter of interpretation. However, in order to resolve the issue, the concerned companies finally rectified the default." NVVN refused to reveal the name of the companies that were found in violation of the bidding rules or where it had got the legal advice from.

Lanco said it "objected to" CSE's statements which it claimed were "wrongly perceived" and not cross-checked with the company. CSE said it had repeatedly tried to solicit comments from the company. Lanco further said, "Lanco Group has equity participation in few of the companies that have won the National Solar Mission projects in 2010.

Equity participation of Lanco is within the permissible levels. The bidders who Lanco supported were able to bid at one of the lowest tariffs as Lanco provided them the latest technology and complete EPC solutions for the projects.

As the power purchase agreement (PPA) for these projects are for a period of 25 years, Lanco's equity participation in these projects also brings confidence to the bidder to use our technology and EPC solutions in arriving at such a competitive tariff.

Source:  http://www.thehansindia.info/News/Article.asp?category=1&subCategory=3&ContentId=38549

Monday 23 January 2012

Sonia Gandhi and Congress Secret Billions Exposed


What was Rajiv Gandhi’s fatal error in politics? It does not need a seer to say that it was his claim to honesty — branding himself as ‘Mr Clean’ — that proved fatal to him. Indira Gandhi was his contrast. Asked about corruption in her government, she said nonchalantly, ‘it was a global phenomenon’. This was in 1983. An honest Delhi High Court judge even lamented how could corruption be controlled when someone holding such a high position had almost rationalised it. The result, no one could ever charge Indira Gandhi with corruption, because she never claimed to be clean. But, ambitious to look ideal, Rajiv proclaimed honesty and so provoked scrutiny; in contrast, Indira, opting to be practical, immunised herself against scrutiny. Eventually, Rajiv’s claim to honesty became the very cross on which he was crucified in the 1989 elections when the Bofors gun shot the Congress out of power. The lesson to the political class was: don’t claim to be honest, if you really are not so. The hard lesson seems forgotten now by the Gandhi family itself. Sonia Gandhi, instead of following Indira’s safe path, is wrongly caught on Rajiv’s risky steps. The consequences seem to be ominous. Will the politics of 1987 to 1989 repeat?


Following Rajiv and forgetting Indira, Sonia Gandhi proclaimed ‘zero tolerance’ to corruption at a party rally in Allahabad in November 2010. She repeated it at the Congress plenary in Delhi weeks later. Asking the cadre to take the corrupt head on, she said that her party was ‘prompt’ in acting against the corrupt; ‘never spared the corrupt’ because corruption impedes development’. This was almost how Rajiv Gandhi spoke in the Congress centenary in Mumbai 25 years ago. Two crucial differences marked Rajiv away from Sonia. First, when Rajiv claimed to be ‘Mr Clean’, he had no scams to defend against. But, Sonia claims to be honest amidst huge and continuing scams — CWG, Adarsh, 2G Spectrum allocation scam…. Next, Rajiv had a clean slate to begin with, with no known skeletons in his cupboard till the Bofors scam smashed his ‘Mr Clean’ image. In contrast, Sonia’s slate is full of credible exposures of bribes and pay-offs in billions of dollars secreted in Swiss bank accounts, not counting Quattrocchi’s millions from Bofors. To make it worse, for almost two decades now, she has not dared to deny the exposures or sue the famous Swiss magazine or the Russian investigative journalist who had put out evidence of bribe against the Sonia family. Seen against this background, Sonia’s vow to act against the corrupt seems like a suspect hooting ‘catch the thief’ and scooting away. This is the main story that unfolds here.


$2.2 billions to 11 billions!


A stunning exposure on Sonia Gandhi’s secret billions in Swiss banks came, surprisingly, from Switzerland itself, where the world’s corrupt stash away their booty. In its issue of November 19, 1991, Schweizer Illustrierte, the most popular magazine of Switzerland, did an exposé of over a dozen politicians of the third world, including Rajiv Gandhi, who had stashed away their bribe monies in Swiss banks. Schweizer Illustrierte, not a rag, sells some 2,15,000 copies and has a readership of 9,17,000 — almost a sixth of Swiss adult population. Citing the newly opened KGB records, the magazine reported ‘that Sonia Gandhi the widow of the former Prime Minister Rajiv Gandhi was controlling secret account with 2.5 billion Swiss Francs (equal to $2.2 billion) in her minor son’s name’. The $2.2 billion account must have existed from before June 1988 when Rahul Gandhi attained majority. The loot in today’s rupee value equals almost Rs 10,000 crore. Swiss banks invest and multiply the clients’ monies, not keep them buried. Had it been invested in safe long-term securities, the $.2.2 billion bribe would have multiplied to $9.41 billion (Rs 42,345 crore) by 2009. If it had been put in US stocks, it would have swelled to $12.97 billion (Rs 58,365 crore). If, as most likely, it were invested in long-term bonds and stocks as 50:50, it would have grown to $11.19 billion (Rs 50,355 crore). Before the global financial meltdown in 2008, the $2.2 billion bribes in stocks would have peaked at $18.66 billion (Rs 83,900 crore). By any calculation the present size of the $2.2 billion secret funds of the family in Swiss banks seems huge — anywhere between Rs 43,000 plus to some Rs 84,000 crore!


KGB papers


The second exposé, emanating from the archives of the Russian spy outfit KGB, is far more serious. It says that the Gandhi family has accepted political pay-offs from the KGB — a clear case of treason besides bribe. In her book The State Within a State: The KGB and its Hold on Russia-Past, Present, and Future, Yevgenia Albats, an acclaimed investigative journalist, says: “A letter signed by Victor Chebrikov, who replaced Andropov as the KGB head in 1982 noted: ‘the USSR KGB maintains contact with the son of the Premier Minister Rajiv Gandhi (of India). R Gandhi expresses deep gratitude for the benefits accruing to the Prime Minister’s family from the commercial dealings of the firm he controls in co-operation with the Soviet foreign trade organisations. R Gandhi reports confidentially that a substantial portion of the funds obtained through this channel are used to support the party of R Gandhi’.” (p.223). Albats has also disclosed that, in December 2005, KGB chief Victor Chebrikov had asked for authorisation from the Central Committee of the Communist Party of the Soviet Union, “to make payments in US dollars to the family members of Rajiv Gandhi, namely Sonia Gandhi, Rahul Gandhi and Ms Paola Maino, mother of Sonia Gandhi.” And even before Albats’ book came out the Russian media had leaked out the details of the pay-offs. Based on the leaks, on July 4, 1992, The Hindu had reported: “the Russian Foreign Intelligence Service admits the possibility that the KGB could have been involved in arranging profitable Soviet contract for the company controlled by Rajiv Gandhi family”.


Indian media


Rajiv Gandhi’s sad demise delayed the Swiss and Russian exposé on Sonia being picked up here. But Indian media’s interest in it actually coincided with Sonia Gandhi assuming leadership of the Congress. A G Noorani, a well-known columnist, had reported on both Schweizer Illustrierte and Albats’ exposés in Statesman (December 31, 1988). Subramanian Swamy had put out the photocopies of the pages of Schweizer Illustrierte and Albats’ book in his website along with the mail of the Swiss magazine dated February 23, 2002 confirming that in its article of November 1991 it had named Rajiv Gandhi with a total of Swiss Franc 2.5 billion ($2.2 billion) in secret account; it had also offered to supply a original copy of the magazine to Swamy. (See: http://www.janataparty.org/annexures/ann10p43.html) These facts were again recalled in my article in The New Indian Express (April 29, 2009) written in response to Sonia Gandhi speech at Mangalore (April 27, 2009) declaring that, “the Congress was taking steps to address the issue of untaxed Indian money in Swiss banks”. The article had questioned her about her family’s corrupt wealth in Swiss banks in the context of her vow to bring back the monies stashed away abroad. Rajinder Puri, a reputed journalist, has also earlier written on the KGB disclosures in his column on August 15, 2006. Recently, in India Today (December 27, 2010) the redoubtable Ram Jethmalani has referred to the Swiss exposé, asking where is that money now? So the Indian media too has repeatedly published the details of the secret billions of the Gandhi family investigated by the Swiss and Russian journalists. Amal Datta (CPI(M)) had raised the $2.2 billion issue in Parliament on December 7, 1991, but Speaker Shivraj Patil expunged the Gandhi name from the proceedings!


Self-incriminating


But, what has been the response of Sonia or Rahul, major after June 1988, to the investigation by Schweizer Illustrierte and Albats and to the Indian media’s repeated references to their investigation? It can be summed up in one word: Silence. Thus, apart from the exposés, the deafening silence of the Gandhis itself constitutes the most damaging and self-incriminating evidence of the family’s guilt. When Schweizer Illustrierte alleged that Sonia had held Rajiv Gandhi’s bribes in Rahul’s name in Swiss banks, neither she nor the son, protested, or sued the magazine, then or later; nor did they sue A G Noorani or Statesman when they repeated it in 1998, or later; nor would they sue Subramanian Swamy when he put it on his website in 2002; neither did they sue me, or the Express when the article was carried in April 2009. When major papers, The Hindu and The Times of India included, had carried the expose on KGB payments in the year 1992 itself adding that the Russian government was embarrassed by the disclosures, neither of the Gandhis challenged or sued them; nor did they sue Yevgenia Albats when she wrote about KGB payments to Rajiv Gandhi in 1994. Neither did they act against Swamy when he put Albats’ book pages on his website or when Rajinder Puri, a well-known journalist, wrote about it in his column on August 15, 2006. However, a feeble but proxy suit was filed by Sonia loyalists to defend her reputation when Albats’ exposé was made part of the full-page advertisement in The New York Times in 2007 issued by some NRIs to ‘unmask’ Sonia to the US audience, as they claimed. The suit was promptly dismissed by a US court because Sonia herself did not dare file the suit. Shockingly even that suit did not challenge the $2.2 billion Swiss account at all!


Imagine that the report in Schweizer Illustrierte or in Albats book was false and Sonia Gandhi did not have those billions in secret accounts in Rahul Gandhi’s name or the family was not paid for its service to the KGB as alleged. How would they, as honest and outraged people, have reacted? Like how Morarji Desai, then retired and old at 87, responded in anger when, Seymour Hersh, a Pulitzer Prize-winning investigative journalist, had mentioned in his book that Morarji Desai was a ‘paid’ CIA mole in the Indian Cabinet. Morarji Desai forthwith filed a libel suit. Commenting in The American Spectator, Rael Jean Isaac wrote in 2004, five years after Morarji Desai had passed away, that Hersh habitually indulged in character assassination; and in his attempt to do down Henry Kissinger, Morarji Desai became the victim. Isaac added that Desai, 87, calling it a “sheer mad story”, reacted in outrage with a libel suit seeking $50 million in damages. When the suit came up, as Desai, 93, was too ill to travel to US, Kissinger testified on Desai’s behalf, flatly contradicted Hersh’s charge and stated that Desai had no connection to the CIA. That is how even retired and old persons, honest and so offended and outraged, would act. But see the self-incriminating contrast, the complete absence of such outrage, in Sonia, who is reigning as the chairperson of the UPA now, neither retired or tired like the nonagenarian Morarji Desai, being just 41 when the story broke out in Schweizer Illustrierte. Imagine, not Sonia or Rahul, but Advani or Modi had figured in the exposés of Schweizer Illustrierte or Albats. What would the media not have done to nail them? What would the government of Sonia not have done to fix them?


Rs 20.80 lakh-crore loot


The billions of the Gandhi family being both bribes and monies stashed away in Swiss banks, they are inextricably linked to the larger issue of bringing back the huge national wealth stashed abroad. All world nations, except India, are mad after their black wealth secreted in Swiss and like banks. But India has shown little enthusiasm to track the illicit funds of Indians in Swiss and other banks. Why such reticence?


When during the run-up to the 2009 Lok Sabha elections, the BJP leader L K Advani promised to bringing back, if voted to power, Indian monies estimated between $500 billion and $1.4 trillion stashed abroad, the Congress first denied that there was such Indian money outside. But when the issue began gathering momentum, Manmohan Singh and Sonia Gandhi had to do damage control and promise that the Congress too would bring back the national wealth secreted abroad. Global Financial Integrity (GFI), a non-profit institution working against global black funds, has recently estimated that the Indian wealth secreted away is about $462 billion, approximately equal to Rs 20.80 lakh-crore. The GFI says that more than two-thirds of it was looted away under the liberalisation regime. This is what the GFI says about the character of the loot: “From 1948 through 2008, India lost a total of $213 billion in illicit financial flows (or illegal capital flight)” through “tax evasion, corruption, bribery and kickbacks, and criminal activities”. Does one need a seer to say under what head would the $2.2 billion in Sonia family’s secret account (which would have grown to $9 to $13 billion by now) fall? But accretions, if any, from the loot in 2G and CWG where the numbers are even bigger are not still accounted. Now comes the more critical, yet practical issue. When the Sonia Gandhi family is among the suspects who have secreted away monies abroad, how will it affect the efforts to bring back the wealth stashed away by others?


Looters safe


Just a couple of examples will demonstrate how the government is unwilling to go after Indian money secreted abroad. As early as February 2008 the German authorities had collected information about illegal money kept by citizens of different countries in Lichtenstein bank. The German finance minister offered to provide the names of the account holders to any government interested in the names of its citizens. There were media reports that some 250 Indian names were found in the Lichtenstein Bank list. Yet, despite the open offer from Germany to provide the details, the UPA-II government has never showed interest in the Indian accounts in Lichtenstein Bank. The Times of India reported that “the ministry of finance and PMO have, however, not shown much interest in finding out about those who have their lockers on the secret banks of Liechtenstein which prides itself in its banking system”. But under mounting pressure the Indian government asked for details not under the open offer but strategically under India’s tax treaty with Germany. What is the difference? Under the tax treaty the information received would have to be kept confidential; but, if it were received openly, it can be disclosed to the public. Is any further evidence needed to prove that the government is keen to see that the names of Indians who had secreted monies abroad are not disclosed?


The second is the sensational case of Hasan Ali, the alleged horse-breeder of Pune, who was found to have operated Swiss accounts involving over Rs 1.5 lakh-crore. The income tax department has levied a tax of Rs 71,848 crore on him for concealing Indian income secreted in Swiss accounts. This case is being buried now. The request sent to the Swiss government was deliberately made faulty to ensure that the Swiss would not provide details. Some big names in the ruling circles are reportedly linked to Hasan Ali. That explains why the government would not deepen the probe. It is Hasan Alis and the like who transport through hawala the bribes of the corrupt from India. If Hasan Ali is exposed, the corrupt will stand naked. This is how the hawala trader and the corrupt in India are mixed-up.


Is it too much to conclude that thanks to Sonia family’s suspected billions in Swiss accounts the system cannot freely probe the $462 billion looted from India at all? Tail-pieces: The total wealth of both Gandhis, as per their election returns, is just Rs 363 lakh, Sonia owning no car. Sonia lamented on November 19, 2010, that graft and greed are on the rise in India!! Rahul said on December 19, 2010, that severe punishment should be given to the corrupt!!! Amen.

 http://www.iretireearly.com/sonia-gandhi-and-congress-secret-billions-exposed.html

sonia Gandhi and black money



 Here is the proof of Black money of sonia. it was around 13000 CRORES (2.5 Billion swiss Franc) in the year 1991 in secret acount of swiss bank. This article was published under the  heading of "DIE Schweizer Konten der Diktatorane",in a Swiss magazine "SCHWEIZER ILLUSTRIETE"in 11th  Nov  1991 issue. It was showing amount diposited in secret accounts by different dictaters and currupt political leaders of world. The name and picture of late PM Mr Rajiv Gandhi can be very  much seen. This article is in German language and One can translate it into English with the use of www. translate.google .com
 
 

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http://www.itimes.com/public/groups/sonia-Gandhi-and-black-money

Sonia Gandhi has 1 Lakh crore black money stashed abroad – Subramanian Swamy



Subramanian Swamy again used harsh words against UPA Chairperson, Sonia Gandhi. Swamy swiped “Sonia Gandhi is a particular kind of Vish-Kanya, Who is eating country slowly-slowly. She has 1 lakh crore Rs. stashed abroad. I know where this amount deposited,”.

Subhramanium Swamy was a Chief Guest in a conference organised by Rashtriya Swayamsewak Sangh(RSS) at Law House, Sector 38 – Chandigarh. He was giving lecture on Corruption.

Swamy added “If Indian Government will declare the blackmoney as a National Property and will follow Swiss Rules & Regulations, Then, India can get those money back. But, I am sured current central government will not do anything in this direction.”

He further attacked her that “Sonia Gandhi is putting pressure on Defence Minister to purchase war-ship from France,This is even worse scam than Bofors Scandal.”

Then, Swamy attacked Prime Minister Manmohan Singh and called him spineless Person. He said “For Manmohan Singh There are only 2G exists, One is Sonia Gandhi and Other is Rahul Gandhi”.

 http://www.indiahillstoday.com/2011/05/29/sonia-gandhi-has-1-lakh-crore-black-money-stashed-abroad-subramanian-swamy/