BJP demands thorough probe into transactions promoted by Bansal’s family members

NEW DELHI: The Bharatiya Janata Party has demanded investigation into allegedly dubious transactions involving more than 100 companies promoted by the family members of former railway minister Pawan Kumar Bansal, who was sacked last week after his kin was booked in a ‘cash-for job’ scandal.


In a letter addressed to the secretary of the corporate affairs ministry, the regulator for companies, BJP leader Kirit Somaiya has claimed to have found abnormal or dubious transactions routed via a network of companies promoted by Bansal’s family members and demanded investigations under Sections 234 and 235 of the Companies Act.

While Section 234 gives power to the registrar to seize company documents, Section 235 deals with probe into the affairs of the company by the Centre. Of the 100 companies owned by what Somaiya calls Bansal’s mahapariwar — meaning the extended family — 42 are said to be held by the former railway minister’s close family members.

The “abnormal” transactions listed by Somaiya include Mirage Infra Ltd and Theon Pharmaceuticals Ltd and relate to unsecured loans, share application money and longterm loans.

ET was able to verify two such transactions relating to these two firms. The first relates to issue of shares by Mirage Infra to an outside shareholder — Rajeev Garg. The company’s board passed a resolution in March 2011 to issue 4,000 shares to Rajeev at Rs 1,000 per share of face value Rs 10 each — that is, at a premium of Rs 990 per share. This transaction brought in Rs 40 lakh into the company.

However, after one year, in March 2012, the company board decided to issue 46,000 shares to three Singla family members at par value — meaning at no premium. Bansal’s nephew, Vijay Singla, was caught by the Central Bureau of Investigation when he was allegedly accepting `90 lakh as bribe through a middleman two weeks ago. This eventually led to Bansal’s ouster from the Cabinet.

The other transaction verified by ET relates to issue of bonus shares by Theon Pharmaceutical Ltd, whose turnover crossed Rs 150 crore from nothing in less than three years. In this instance, the board, in March 2012, decided to issue 8.75 lakh bonus shares to 11 of Bansal’s family members. It did so by capitalising Rs 87.5 lakh from Reserves & Surplus of the company.

In addition, eight family members of Bansal, who were appointed as directors or at executive positions, were paid a remuneration of Rs 11.26 lakh per month or Rs 1.35 crore per year.

Other “abnormal” transactions alleged by Somaiya could not be independently verified by ET. These are related party loans shown in the books of one company ( Makerkotla Steels Private Limited) but not disclosed in another side (Mirage Infra Ltd) for the year ended March 2012. Similar transactions include Garg Pipes Private Limited and Mirage Infra Ltd.