Kejriwal attacks Gadkari after CAG indictment
2 May 2015 6:05 AM IST
Delhi Chief Minister Arvind Kejriwal on Friday took a dig at Union Minister for Road, Transport, Highways and Shipping Nitin Gadkari after his name came out in a CAG report for violating financial guidelines of Indian Renewable Energy Development Agency Limited’s (IREDA) for securing loan.
Reacting on the CAG report, Kejriwal on his facebook post wrote “CAG report tabled in LS on Thursday on Rs12 cr violation by Purti Group names Nitin Gadkari as its promoter/director - but it is not news!”
It is expected that Aam Aadmi Party (AAP), Congress and other political parties are likely to raise the issue in the Parliament on coming Tuesday.
CAG slammed IREDA for “violation of financial guidelines” in connection with Rs 48.65-crore loan to the company for which its promoters and directors including Gadkari had given “personal guarantee”.
“In case of M/s Purti Sakhar Karkhana Limited (Project No. 1546), Ministry of New and Renewable Energy (MNRE) sanctioned an amount of Rs1.92 crore as interest subsidy and against this released Rs1.37 crore (June 2004) to IREDA on Net Present Value27 (NPV) basis for disbursement to the borrower. However, the borrower did not comply with the conditions for interest subsidy,” CAG report reads.
As per the report, the promoters and directors of the company were Nitin Jayaram Gadkari, Jayakumar Rameshji Verma, Anandrao Motiram Raut, Astik Janglu Sahare and Vishnu Govind Chorghade.
“IREDA disbursed first installment in March 2003 of Rs10.25 crore and second installment in July 2003 of Rs4.25 crore as an interim loan totaling to Rs 14.50 crore on request of the borrower which was more than 25 per cent of the loan sanctioned and done through violating the financial guidelines,” report reads.
It was observed that after the first installment in March 2003, the borrower’s financial position was unstable as one of the creditors Canbank Factors Limited of the borrower requested IREDA directly to clear the liability of the company to the extent of Rs1.50 crore.
Settled entire outstanding debt as per OTS norms: Purti
With CAG flaying IREDA for “violation of guidelines” in loan given to a Purti firm, the group on Friday said it had settled the entire debt outstanding as per one-time settlement (OTS) norms. “CAG report clearly mentions that in April 2014, the IREDA management told the CAG that PSKL settled the entire loan outstanding as per OTS norms,” Purti Power & Sugar Ltd said in statement on Friday.
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