Update. 8 March, 2013.
While the Government tried to brush aside charges for the past 4 months, new evidence has surfaced about Robert Vadar’s suspicious activities.
Headlines Today reports.
“Robert Vadra’s land deals in Haryana have turned murkier with new evidence suggesting hard cash transactions were made in the guise of a property purchase.
A Headlines Today investigation has unearthed documents which raise suspicion over the authenticity of Vadra’s land deals and the validity of the clean chit given to him by a three-member probe panel appointed by the Haryana government in October last year.
Between 2005 and 2006, Vadra struck four land deals with one agriculturist – Harbans Lal Pahwa – buying a total of 46 acres land in Amipur village in Faridabad district, only to sell it back to Pahwa at a premium five years later.
Vadra signed the land deals overlooking the Haryana Ceiling on Land Holdings Act, 1972, which states that one person or family can buy a maximum of 26.9 acres of agricultural land in the state.
On September 8, 2005, Vadra bought 12 acres of land in Amipur village from Pahwa for over Rs 32 lakh. On January 13, 2006,he bought 19 acres from Pahwa for Rs 54 lakh.
On April 14, 2006, Vadra acquired 10 more acres of land from the same land dealer for Rs 30 lakh. On April 28, 2006, Vadra’s wife Priyanka Gandhi struck a deal with Pahwa for 5 acres in Amipur for Rs 15 lakh.
Pahwa bought the land in three installments in 2010, bearing a loss of about Rs 2.5 crore. The transaction triggered suspicion about Pahwa’s connection with Vadra, and the relationship fell under scrutiny when Headlines Today dug up Vadra’s balance sheets.
The investigation team came across a curious figure of Rs 1.55 crore against the name of Harbans Lal Pahwa.
Documents in the possession of Headlines Today show Pahwa’s company, Carnival Intercontinental Estate Pvt Ltd, had given a loan of Rs 1. 55 crore to Vadra’s company, Skylight Hospitality.
Pahwa also held a directorship in Vadra’s company, Real Earth, for over a year between February 2008 and March 2009″
Copy of the Cheque issued by Robert Vadra
(via The Mail Online).
Just how and where from DLF lend Robert Vadra?
It is evident from Records of DLF it had huge debts,yet lent Robert Vadra free of interest the money it had borrowed at 12.8.%/a.
Finance Minister P.Chidambaram, while ruling out an enquiry into Robert Vadra’s dealings, stated that ‘no enquiry can be instituted on the basis of insinuations”
Is this insinuation not borne and substantiated by the facts mentioned above?
The Affairs of DLF.
Here is a company which analysts believe should be cutting down on its debt by around Rs 9,000 crore, and it has been giving out interest-free loans to an individual with zero or very little experience in running a real estate business. Reuters
“The company has recently been accused by Arvind Kejriwal and Prashant Bhushan of giving interest free loans amounting to Rs 65 crore to Robert Vadra. Vadra is married to Priyanka Vadra, daughter of Sonia ‘…..
Kejriwal and Bhushan have released documents which clearly show that companies set up by Vadra borrowed money from DLF and then used that money to buy properties from DLF, among other things…
Please Down load from scirbd.com
“According to a tweet on the Twitter handle of news channel NDTV, DLF has said that their dealings with Vadra have been completely transparent. Vadra, on his part, had explained his relationship with DLF to The Economic Times in March 2011. “I have a good understanding with DLF. Our children are friends, we are friends. They are seasoned businessmen. They are not daft. They are educated, sensible people and are reasonable and shrewd in their business. They don’t need me to enhance them. They’ve existed for years,” Vadra had said. (You can read the complete story here)….
As per an analyst presentation (dated 6 August 2012) made by DLF, the gross debt of the company stands at a whopping Rs 25,060 crore as on 30 June 2012. At the end of 31 March 2012, the gross debt had stood at Rs 25,066 crore. (You can access it here).
The annual report of DLF points out “the company’s borrowings from banks and others have a effective weighted average rate of 12.38 percent per annum, calculated using the interest rates effective as on 31 March 2012 for the respective borrowings.”
So what this means is that the company had debt outstanding of Rs 25,066 crore as on 31 March and was paying an interest of 12.38 percent on that debt. The debt outstanding as on 30 June 2012 had not changed much and was at Rs 25,060 crore. It is fair to assume that over a period of three months the interest rate on the debt outstanding wouldn’t have changed significantly.
What is also interesting is that during 2011-2012 (i.e. the period between 1 April 2011 and 31 March 2012), the sales of the company stood at Rs 4,582.67 crore. This means that the debt of the company is nearly 5.5 times its annual sales, which is extremely high.
The question that DLF needs to answer is that why is a company which has such huge outstanding debts, paying an interest of 12.38 percent per year on it, giving out interest-free loans? Also it seems to have been having trouble in bringing down its outstanding debt. The outstanding debt between March and June 2012 has gone down by only Rs 6 crore.
The company has been trying to bring down the debt by selling investments that it had made over the last few years. It recently sold a plot that it owned in Lower Parel in Central Mumbai to Lodha Developers for Rs 2,750 crore. The company has been trying to sell several of its other investments over the last few years..’..
Robert Vadra’s Deals.
“Independent directors of DLF have said the controversial transactions between Robert Vadraand India’s largest realty firm were not discussed by the board and if allegations of easy loans and cheap deals are proved, they should be probed.
“The matter was not flagged off at any board meeting. We have not come across any such instance where favours have been done. It’s not come to our notice. It is not possible to look at each and every sale transaction. But we try to ensure that all transactions are done at market prices,” said KN Memani, an independent director at DLF, and former chairman of Ernst & Young India”.