Piyush Goyal family firm made 3000-times profit on paid-up capital, says Congress; BJP denies

Denying the allegation, the BJP said, “Congress continues...making false, sensational and scurrilous statements to divert attention from huge scams of Congress party and its leaders which are in public domain.”

By: Express News Service | New Delhi | Updated: April 11, 2018 12:48:31 pm
india news, Piyush Goyal, Piyush Goyal business, Piyush Goyal wife business, BJP, Congress, indian Express Union Railway Minister Piyush Goyal. (Photo: Reuters/File)

The Congress on Tuesday alleged that a company owned by Union Railway Minister Piyush Goyal’s wife Seema has made a profit 3,000 times over its paid-up capital in the last 10 years, and claimed that the firm’s corporate filing has not specifically described any normal business income or activity. The party also reiterated its earlier charge that Goyal has close ties with Rakesh Agarwal and Mukesh Bansal of Shirdi Industries Ltd, which had defaulted on payment of loans to the tune of Rs 650 crore to a consortium of banks.

Goyal was chairman and whole-time director of Shirdi Industries for two years until 2010. Denying the allegation, the BJP said, “Congress continues…making false, sensational and scurrilous statements to divert attention from huge scams of Congress party and its leaders which are in public domain.”

Congress spokesperson Pawan Khera told the media that Advisors Private Limited, a company incorporated in 2005-06, “earned a profit/earning of Rs 30 crore on a paid-up capital of Rs 1 lakh, which is 3,000 times of the paid-up capital.” He said Goyal and wife Seema are owners of Intercon Advisors.

“Piyush Goyal resigned as a director on May 13, 2014 (just before becoming a Union minister) and transferred his shares to his wife. Presently, Seema Goyal owns 9,999 shares and one share is owned by Dhruv, son of Piyush Goyal. It is a 100-per cent family-owned company,” Khera said.

Khera said Goyal and family did not disclose complete source of earnings of Intercon Advisors in 2007-08, 2008-09, 2014-15, 2015-16 and 2016-17, and merely described it as ‘Consultancy Fee’, ‘Short-Term Capital Gains’ or ‘Profit on Future and Options’ without giving any details. “This becomes even more strange as the company’s corporate filing reflects that there is no normal business income or activity that had been specifically described,” Khera said.

Calling the accusations a “series of blatant falsehoods”, the BJP said in a statement that Goyal is an “eminent chartered accountant” and provided his services through Intercon Advisors Private Limited from 2005-06, when the firm was founded, to 2013-14. “He has resigned from it in May 2014,” the party said.

Reiterating that Goyal had nothing to do with Shirdi and associated companies since 2010, the BJP stated, “Goyal was on board of Shirdi Industries from 25th April 2008 to 1st July 2010 and has nothing to do with Shirdi or its associated companies since then.”

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