Tag Archives: Telecom Scam

IL&FS, DB Realty & Rural Development Ministry – Its all in the family

Posted on by Track2Realty

By Ashok Wankhade

Track2Realty Exclusive-III

IL&FS, DB Realty, A Raja, Telecom Scam, 2G Spectrum Scam, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyIn an obvious chain of patronage IL&FS, the company which gets the contract opts for Sanganer project Rajasthan from where Arvind Mayaram’s mother Indira Mayaram has been contesting Assembly elections and Mayaram and family has farmland there.

The second contract goes to the then Rural Development Minister C P Joshi’s constituency Rajasamand and the third in Uttarakhand where Mayaram family has benifitted from their N D Tiwari connections. The Trust Anirudh Mayaram Foundation registered on 7th June 2005 gets a corpus grant of Rs 11 Lakh from the Uttarakhand Government in which Arvind Mayaram is the Member Secretary.

Doesn’t this prove that the Inter-Ministerial Empowered Committee which has done the appraisal has also been kept in dark and manipulated by the Financial Advisor and Additional Secretary of the Department?

No probe has been ordered into the link between IL&FS and the DB Group where IL&FS invested pre-IPO and then had the impudence to place its executive director, Shahzad Dalal as an “Independent Director” with DB Realty. He quit in a heart-beat once the arrest of  Shahid Balwa came to light in the 2G Scam. IL&FS was also a lender to Raju’s of Satyam and they used the Company Law Board to take over the shares of Maytas, overlooking minority shareholders.

Incidentally, Member of Parliament Sumitra Mahajan, who is also the Chairperson of the Standing Committee of Parliament on Rural Development, has also written to the Rural Development Minister Vilasrao Deshmukh pointing to the favour by the senior official of the ministry to the IL&FS.

In the letter Mahajan says that IL&FS Company was favoured by senior bureaucrats of the ministry because the close relative “is working with M/s IL&FS”.  Requesting Deshmukh to look into the matter personally, Mahajan says, “if it is true, then it is clear violation of Rule 4 of the Central Civil Services (Conduct) Rules 1964, which indicates that the civil servant cannot give contract to a company where his/her close relatives are working”.

But despite the emergence of the fact that IL&FS had invested in scam tainted DB Realty the Rural Development Ministry has continued to carry on its partnership with the infrastructure and finance company.  Reports suggest that more projects are in the pipeline which would be awarded to IL&FS under the Public Private Partnership (PPP) scheme of the government for the country’s rural areas.

IL&FS & Rural Development Ministry’s largesse to DB Realty

Posted on by Track2Realty

By Ashok Wankhade

Track2Realty Exclusive-I

IL&FS, DB Realty, A Raja, Telecom Scam, 2G Spectrum Scam, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyAt a time when investigations into the “mother of all scams” the 2G spectrum allocation scam allegedly by former telecom minister A Raja and owners of some telecom firms are in full swing and the Apex Court is monitoring the investigations, it has come to light that the Rural Development Ministry has been awarding projects to a major infrastructure and finance company, IL&FS which had invested in the scam tainted DB Realty.

The IL&FS, in which a number of government agencies have a major stake had invested in the Shahid Balwa’s DB Realty and that too before the realty firm had come out with its IPO last year. Balwa was arrested in February and is in judicial custody along with Raja and his other associates for allegedly causing the national exchequer a loss of Rs 1.76 lakh crore while doling out telecom licences in 2008 on the first-come-first-serve basis.

Balwa, country’s youngest billionaire, had promoted Swan Telecom and after getting the telecom licence had sold 45 per cent stake to UAE-based Etisalat for $900 million in 2009. The telecom firm promoted by him is now known as Etisalat-DB. There are also allegations against him that over Rs. 200 crore was transferred by DB group to a media company owned by DMK party members.

Despite the knowledge of the infrastructure and finance company IL&FS having stake in the scam tainted DB Realty, the Rural Development Ministry has awarded it with three projects under the provision of Urban Amenities in Rural Areas (PURA) and that too against the norms of the scheme. Reports suggest that these projects have been allocated to the infrastructure and finance company as a result of the alleged bias of a senior official of the Rural Development Ministry, whose son is working with the company.