Robert Vadra: Proxy Tycoon?

Robert Vadra: Proxy Tycoon?: "

Robert Vadra: Proxy Tycoon? Sandhya Jain19 Mar 2011 Fallout of the dwindling Dyarchy Amidst the stench of corruption and malfeasance rising from the second political innings of the UPA coalition headed by Manmohan Singh but pr... And now, just a few weeks down the line, comes the news that Priyanka Gandhi’s fitness freak polo playing spouse is making strides in the real estate business, a sector riddled with nepotism and scandal as exemplified by the Adarsh housing scam in Maharashtra, which forced Ms Sonia Gandhi to urge Congress chief ministers to give up their discretionary powers in this area. It is pertinent that facts personally embarrassing to the Gandhi family are emerging on the heels of strong nudges to Dr Manmohan Singh to step down so that Rahul Gandhi, reputedly the born-to-be ruler of India, could receive on-the-job training and redeem his otherwise inglorious existence. Robert Vadra’s entry into the real estate business has been accompanied by a partnership with the country’s largest realty firm, DLF Ltd, a staggering feat by any standards (The Economic Times, 14 March 2011). Hitherto known for the export of faux jewellery and handicrafts, the 42-year-old Vadra quietly switched lanes in 2008, buying up land in Haryana and Rajasthan, a 50% stake in a leading business hotel in Delhi, and attempting to enter the business of chartering aircraft, a quantum jump that certainly merits an explanation. Vadra seems to have floated a number of companies, some of which have received unsecured loans from the DLF group companies, including the Bombay Stock Exchange-listed flagship DLF Ltd. Readers may recall that during investigations into the Spectrum Scam, the CBI found that a number of non-entity (shell) companies had received and passed on unsecured loans that ended up in Kalaignar TV! It believes these were bribes received against the sale of spectrum at throwaway prices, and that the loans would ultimately be cancelled as ‘bad debt’ and the slate wiped clean. Thus, Vadra’s receipt of unsecured loans certainly merits a probe. Sky Light Hospitality Pvt. Ltd. (wholly owned by Vadra and his mother Maureen Vadra) is a partner, along with DLF Hotel Holdings and others, in a partnership firm that owns the posh Hilton Garden Inn in Saket. DLF’s generous loans to Vadra companies, some without collateral, include: - As on March 2009, Sky Light Hospitality had received unsecured loans amounting to Rs 25 crore from DLF Ltd. - As on March 2010, only Rs 10 crore remained. It was unclear from the statement of accounts if the rest was paid back or written off. - Sky Light Hospitality in turn loaned money to other Vadra-owned companies such as Blue Breeze Trading Pvt. Ltd, North India IT Parks Pvt. Ltd, Real Earth Estates Pvt. Ltd and Sky Light Realty Pvt. Ltd. http://economictimes.indiatimes.com/thumb.cms?msid=7698248&width=300&resizemode=4 On 21 March 2011, The Indian Express reported that some time prior to the 2009 elections, Rahul gave up his business venture, Backops Services Private Limited, to devote himself to full-time politics. It was by all accounts a modest venture, nothing compared to the phenomenal ascent of Robert Vadra. What is pertinent, however, is the suspicious overlap in Rahul Gandhi’s retreat from business and Vadra’s big time leap into the arena.