New Delhi: The BJP is still grappling with the storm over foreign minister Sushma Swaraj’s recommendation to UK authorities to grant Lalit Modi travel documents. But now, a new controversy has now come to the fore.
The Enforcement Directorate, in an ongoing investigation of Modi and his associates, has found that a firm owned by Rajasthan chief minister Vasundhara Raje’s son, Dushyant Singh, a BJP MP from Jhalawar-Baran had received Rs 11.63 crore from the former IPL commissioner.
A source said the ED, while on the trail of Rs 21 crore, Modi’s firm Anand Heritage Hotels Pvt Ltd (AHHPL) had received from an unknown Mauritius-based entity Wilton Investment Ltd, uncovered a transaction where a part of this money was used to pay Dushyant’s firm Niyant Heritage Hotels Pvt Ltd (NHHPL).
The payment was made in April 2008 by way of an unsecured loan of Rs 3.80 crore and later by acquiring 815 shares in two installments. A total of Rs 11.63 crore was transferred by Modi to Dushyant’s firm through loan and share purchase.
The unusual price which Modi’s Anand Heritage offered Dushyant to buy shares in his firm was floated during Raje’s first tenure as Rajasthan CM, caught the attention of the investigators. Modi bought these shares of Rs 10 at a premium of Rs 96,180 each.
When contacted, Dushyant had defended the share premium, saying, “The decision to allot shares at a premium was a prudent business decision, based on proper valuation and also taking into account the future potential of the company.” In a written response, he acknowledged the unsecured loan of Rs 3.80 crore from Modi’s firm, and share purchases in the next two financial years.
Dushyant and his wife Niharika are directors in NHHPL, in which they had invested Rs 50,000 each. The company, NHHPL, had a total authorized capital of Rs 10 lakh. The shares of the company were priced at Rs 10 each when the company was first started in 2005.
However, when Modi bought shares in this firm, he had to shell out Rs 96,190 for each share. The transaction for 815 shares was more than Rs 7.80 crore. Sources said the ED investigation would look into whether NHHPL, when it was sold to Modi, possessed enough assets or had enough business to justify the price.
“AHHPL granted loan of Rs 3.80 crore to Niyant Hotels Pvt Ltd. In the next two financial years, NHHPL allotted shares to AHHPL at a premium. These are duly reflected in the account books” confirmed Dushyant.
When asked about his links with Modi and how the later bought shares of Rs 10 at a premium of Rs 96,180, Dushyant said all that was reflected in the account books and he would not like to elaborate further. He said he was “not aware of any enquiry being conducted against us”.