By Indranil Banerjea
The fact that this is not the first time that allegations made by India Against Corruption against Robert Vadra, the son-in-law of Congress president Sonia Gandhi, have surfaced in the public domain does not take away from their significance. The IAC has alleged that the monetary and commercial transactions entered into between Vadra and DLF, one of this country’s top realty companies, suggest wrongdoing.
Why DLF should grant Vadra an interest-free loan of Rs. 65 crore with which the latter went on to buy properties built by the former at throwaway prices, is the question IAC has raised.
DLF, on its part, has denied that any such loan was provided to Vadra. Being a public limited company, this declaration is significant. In the face of such allegations and DLF’s defence, it would be unwise to make a judgment on a prima facie basis. But it must be said that this episode raises once again questions of propriety and best practices regarding politicians and the business class. Sky Light Hospitality Pvt Ltd is the centrifuge of Robert Vadra’s business empire. The company in which Vadra is a director had received Rs. 65 crore as advance from DLF Ltd as on March 31, 2011. Arvind Kejriwal and Co are alleging that this advance received by Vadra was used to purchase a welter of properties from DLF at below market prices. Vadra received a business advance of Rs. 65 crore as the total price paid for one plot of land which was bought and duly registered on the National Highway 8. Sky Light Hospitality, with a registered address at 268, Sukhdev Vihar, was incorporated on November 1, 2007, as a company listed by shares with an authorised capital of Rs. 1 crore and a paid up capital of Rs. 5 lakh, and the registration number of 170056.
India Against Corruption (IAC) is alleging that all of Vadra’s companies had no income from legitimate business activity and yet Vadra managed to buy properties worth Rs. 300 crore. Trashing these claims and taking the wind out of the IAC sails, DLF Ltd said in a detailed press statement: “We wish to categorically state that the DLF has given no unsecured loans to Vadra or any of his companies. An amount of Rs. 65 crore was given as business advances for the purchase of land as per standard industry practice comprising of the following two transactions. M/s Sky Light Hospitality Pvt Ltd approached us in FY 2008- 09 to sell a piece of land measuring approximately 3.5 acres just off NH 8 in village Sikohpur, district Gurgaon. This was licensable to develop a commercial complex and the LoI (letter of intent) from the Haryana government to develop it for a commercial complex had been received in March 2008 itself. DLF agreed to buy the said plot, given its licensing status and its attractiveness as a business proposition for a total consideration of Rs. 58 crore. As per normal commercial practice, the possession of the said plot was taken over by DLF in FY 2008- 09 itself and a total sum of Rs. 50 crore given as advance in installments against the purchase consideration.
“M/ s Sky Light group of companies also offered us in FY 2008- 09 an opportunity to purchase a large land parcel in Faridabad and, accordingly, DLF agreed to advance Rs. 15 crore in installments simultaneous to the commencement of due diligence of the said land parcel. After concluding that the said land had certain legal infirmities, we decided against its purchase. Accordingly, on DLF’s request, the Sky Light group refunded the advance of Rs. 15 crore in totality. To reiterate, at no stage was interest- free loan ever given to the group. There were two sets of business advances against the purchase of property, one of which amounting to Rs. 50 crore resulted in a satisfactory conclusion of purchase of commercial land and the second advance of Rs. 15 crore was fully refunded.” Vadra is also a director in Blue Breeze Trading, Sky Light Realty, Real Earth Estates and North India IT Parks. He is the additional director in Lambordar Art Enterprises, and the managing director in Lifeline Agrotech, Greenwave Agro, Right Line Agriculture, Future Infra Agro, Best Seasons Agro and Primetime Agro. A top BJP politician asked whether a transaction between two entities of this magnitude is par for the course and if the UPA chairperson’s (Sonia Gandhi’s) son- in- law was not involved. Rajiv Shukla, Union minister of state for parliamentary affairs, bristling with anger, hit back, saying: “This allegation is nothing new. A year ago he (Kejriwal) tried to sell it to the newspapers but nobody bothered. Now he is trying again. Vadra is a businessman he is not doing kheti (farming).
All businessmen take loans to build their business. Maybe Vadra also did that. What is wrong with that? But there is nothing to prove any wrongdoing, no proof that the Congress helped the DLF.” The BJP’s refrain is that shouldn’t such a transaction stand scrutiny? Stoking the fires, the man who levelled all the allegations, Arvind Kejriwal, said: “I am ready to face defamation charges if the allegations against Vadra are proved wrong. Why is the Congress silent on the merits of the case?” Shukla went further and added: “The BJP has also been making these allegations and making the rounds to media houses. The BJP is doing this through him (Kejriwal). Till today, nothing came out of Bofors but they (BJP) used it for elections. Similarly, at an election time they are trying this gimmick. The DLF has acquired land in many states, including those ruled by the BJP. Does it mean BJP CMs struck deals?” Congress spokesperson Manish Tewari trashed Kejriwal’s allegations.”An inquiry into what? Is a business transaction between two private entities duly reported to the statutory authorities illegal? Is it a crime?” he asked. Tewari’s refrain was that all information about the business has been regularly filed with the statutory authorities. He said the charges made by BJP’s “B team” were baseless. Vadra defended himself stoutly on Facebook and deactivated the account today. “Thanks so much for your concern, I am fine, I can handle all the negativity. I have lost people who I loved, what can be worse than that?” he asked. But the heat from the Opposition and civil society continued unabated. When asked whether the Congress was responding to the matter because Vadra is related to the Gandhi family or because he is a member of the party, Tewari said a response needed to be given to expose the BJP for resorting to low- level politics against the Congress by involving private citizens.
Tewari alleged that the charges levelled by Kejriwal were the latest instance of the BJP targeting the Congress with a chain of baseless allegations. Finance minister P. Chidambaram said in response to a query on whether the government will probe the allegations: “I’m not aware of the rightness or wrongness of the allegations.Transactions between two private individuals cannot be questioned on the basis of an implied act of corruption.”
If Vadra is a private person why is it a battery of ministers – law, finance, and top party functionaries are out to defend him? His only qualification is that he is married in the Nehru- Gandhi family, and he should not be allowed to get away with his business misdemeanour.