FATF flags Gandhi family corruption: I&B Minister Anurag Thakur

While FATF mentions no names, calling the accused ‘Mr A,’ Information & Broadcasting Minister Anurag Thakur cited the report to say it was a matter of “great shame” that the “story of Gandhi family’s corruption” is part of the FATF report.

Incidentally, the ED had alleged that Kapoor purchased a painting from Congress leader Priyanka Gandhi.

In its report titled ‘Money Laundering and Terrorist Financing In The Arts And The Antiques Market’, the FATF flagged the example of Mr A: “Mr A was managing director and CEO of an Indian bank who misused his position during his tenure. He sanctioned loans of the rupee equivalent of USD 628 million to business entities incurring losses or with negative credit, deliberately violating existing norms and regulations.”

The report also refers to a study which “revealed that the suspect bought art of no actual value at a price of USD 264,000 from a close associate of a corrupt politician in order to pay kickbacks”.

Incidentally, the ED had said, in one of its chargesheets, that Kapoor had told the agency he was “forced” to buy an M F Husain painting from Congress’s Priyanka Gandhi Vadra for Rs 2 crore and that sale proceeds were utilised by the Gandhi family for the medical treatment of Congress president Sonia Gandhi in New York.

Thakur said: “One after another, new models of Congress’s corruption are coming to the fore. Sometimes it is National Herald, sometimes Vadra land scam, sometimes some another. Now FATF has published a case study that how a former Union Minister in the UPA government pressurised an individual in buying Priyanka Gandhi Vadra’s average painting for Rs 2 crore. It is a matter of great shame that the story of corruption of the Gandhi family is made into a case study and being told to the whole world, that too by an organization that works to stop terror financing.”

The report neither names Rana Kapoor, nor Gandhi, nor Yes Bank, but its details match the Kapoor case.

“Mr. A purchased mediocre art from politicians and in turn paid huge kickbacks through banking channels, projecting them as genuine pieces of art,” the report says. “In one such incident, Mr. A purchased a piece of art from the close relative of a member of the ruling political party at that time for USD 264 000. However, the investigation revealed that this was an over-valuation, and that that the price paid was not for art, but rather was a bribe to influence the awarding of the prestigious Indian award ‘Padma Bhushan’ for himself. The trial is ongoing and Mr. A has been in judicial custody since March 2020,” the report says.

Kapoor was arrested by ED in March 2020. He also told the ED, the agency claimed, that he was told by the then Petroleum Minister Murli Deora that the refusal to buy the M F Husain painting will not only prevent him from building a relationship with the Gandhi family but also prevent him from getting the Padma Bhushan.

Kapoor’s lawyer was not available for comment.

“A money laundering investigation revealed that Mr. A used his influence to sanction the loan to a loss incurring entity, Company B. Investigations further revealed that Company B diverted the loan to 79 shell companies including Company C, which was controlled and owned by Mr. A and his daughters. Company C received USD 79 million and used part of the funds to purchase assets including art from famous painters and influential people. Mr. A invested a significant amount of proceeds in buying art of famous artists. Investigations revealed that he had purchased around 44 paintings,” the report added.

Indeed, the ED has alleged that Rana Kapoor and Dewan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan had siphoned off funds worth Rs 5,050 crore through suspicious transactions using a host of shell companies. The agency had also made a mention of purchase of 44 paintings by Rana Kapoor.

In March 2020, Congress leader Abhishek Manu Singhvi had said that in 2010, an M.F. Hussain painting (which is a portrait) of Rajiv Gandhi was sold to Rana Kapoor for a sum of Rs 2 crore.

“The entire amount was received in cheque and was fully disclosed in Income Tax return of 2010 by Smt. Priyanka Gandhi Vadra. Incidentally, only the other week, a painting of M.F. Hussain has been sold by ED and has fetched a price of Rs 13.44 CR. So stop diverting Mr. PM & FM, answer how did the loan book of Yes Bank rise by 2 lakh crore and was Govt. sleeping or complicit?” Singhvi had then said.