Fresh trouble was brewing for BJP president Nitin Gadkari with the government on Tuesday deciding to go into allegations of dubious funding in his companies, a move that may dampen his chances of getting a second term as party chief in December.
Following allegations levelled by India Against Corruption activists, embarrassing details have started tumbling out about the funding for Purti Power and Sugar Ltd, ran by Gadkari.
Corporate affairs minister M. Veerappa Moily informed the media that therefore, under the circumstances, as information on the issue has entered the public domain, the Registrar of Companies will “definitely inquire into it”.
The minister added, “We have not ordered anything. It is all coming in the newspapers. Since it has come in the public domain, we told our ministry to make some discreet inquiries to find out what exactly is the matter, are there any violations of the Companies Act?”
When asked whether the business dealings of Robert Vadra, the son-in-law of Congress president Sonia Gandhi, will also be scrutinised, the minister said the two issues were separate and there was no link between them.
Media reports have raised questions over the source of funds for Purti Power and Sugar Ltd, controlled by Gadkari.
Investigative reports by media organisations claim that major investments and large loans to Purti were made by a construction firm, Ideal Road Builders (IRB) Group, which had won contracts between 1995 and 1999, when Gadkari was PWD minister in Maharashtra. Gadkari denied the allegations and laid himself and his companies open to any probe.
Meanwhile, accusing the government of taking a “selective and prejudiced” approach, the BJP launched a counter-offensive by claiming the government was ignoring charges levelled against Vadra and former Union minister Virbhadra Singh. The party said it endorsed Gadkari’s stand that he was open to any probe.