Press : BJP National Spokesperson, Smt Nirmala Sitharaman on Former UP CM's brother and Loan waiver

I.   A reputed national newspaper has today exposed questionable financial transactions worth several hundred crores by companies owned by a brother of former Uttar Pradesh Chief Minister, Kum. Mayawati.

The seven companies owned by ShriAnand Kumar, the brother of the former chief minister of Uttar Pradesh, have received approximately Rs. 757 crores in the 5 years between 2007-’12, when KumMayawati was at the helm of affairs.

During the assembly elections in 2011, the BJP submitted reports to the authorities that ShriAnand Kumar had floated over 76 companies and through laundering of slush money was acquiring wealth disproportionate to his known source of income. The BJP allegations had highlighted that these companies of Shri Kumar have invested in companies incorporated in tax havens too. It was suggested that his relationship with the chief minister was being unfairly and illegally exploited. This expose, today, in the Economic Times has only validated the BJP charges. There are several unexplained cash induction into Shri Kumar’s companies, huge profits earned from sale of undisclosed and unidentified properties and sale of shares at premium rates of tinsel worth companies. A Vadra-style copy book practice of receiving advances for unspecified services from third parties is followed by a loss making company owned by Shri Kumar.

What is the source of these monies received by ShriAnand Kumar’s companies? Huge dividend payments are received on investment of one lakh rupees. How and why are they received?

The brother of the BSP chief has lots of answers to give. The BSP chief is a strong ally of the corrupt Congress led UPA government. During the debate on FDI in multi-brand retail Kum. Mayawati’s double speak was watched by the entire country.

II.    Another scandal in the name of the farmers of India has come to light, thanks to the CAG.

The Farm loan waiver scheme amounting to Rs 52,280 was announced in February 2008 by the then UPA I government.  The CAG has conducted a performance audit between April 2011 and March 2012. It has covered 25 states, 90,576 farmers whose accounts are in 715 branches of banks in 92 districts. The CAG report, as highlighted by the media, has shown that there was no oversight mechanism established for the implementation of the scheme.  The National Level Monitoring Committee failed to do its duty. The Finance Ministry, the RBI and the NABARD had no oversight mechanism, between themselves on this matter. No single minutes of meetings held for this purpose was available, as was reported in the media.

The most worrying point is that for the last five years, “the government has made no effort to carry out or to find out if Rs 52,000 crores of taxpayers’ money was spent properly.”

Smelling big trouble, the Finance Ministry on 11 January 2013, has directed the RBI and NABARD to take action against erring officials and banks. It has also demanded recovery of money from ineligible farmers.

Two finance ministers – Shri P Chidambaram had designed and proposed the loan waiver scheme clearly with the 2009 elections in mind and ShriPranab Mukherjee who further and further implemented this scheme without any oversight.

That the benefits did not reach the intended and deserving beneficiaries was all the while known. Now the CAG report has perhaps only established the same.

• The BJP demands that the UPA government explain the role and the responsibility of the two finance ministers – ShriP Chidambaram andShriPranab Mukherjee- for their negligence and inaction in ensuring proper implementation of the scheme.

(O.P.Kohli)
Headquarter Incharge

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