Purti Group refutes all charges; government willing to discuss issue in Parliament

NEW DELHI: The government today assured Parliament that questions asked by the Congress on the involvement of Union minister Nitin Gadkari over a Comptroller and Auditor General (CAG) report on loans extended to Purti Sakhar Karkhana Ltd (PSKL) would be answered if deemed necessary. Gadkari had been chairman of PSKL till 2011. The CAG has said the company did not return about Rs 12 crore out of borrowings of Rs 84 crore by getting the government-owned Indian Renewable Energy Development Authority (IREDA) to waive penal interest over non-payment of loans.

“The government is willing to discuss any charges if sought under relevant rules,” minister of state for parliamentary affairs Mukhtar Abbas Naqvi said.

PSKL managing director Sudhir Dive told ET that all relevant queries by the CAG had been answered by the company.

“It is ironic that we are being held up for returning the maximum amount of money to IREDA of the 29 companies audited by the CAG. We were declared a non-performing asset in 2007 and returned the money, taking the one-time settlement route in 2009,” he said. “An OTS is a legitimate banking practice where penal interest is waived -- it’s waived for all, not just us. We have paid not just the principal amount but also the interest.”

He pointed out that compared with the average recovery rate of about 47% for loans, PSKL had paid back 85% of the money.

“As for the other objections of the IREDA board member not making it to our meeting, is it our fault?” he asked.

Gadkari, who has just returned from Iran after concluding the Chabahar port agreement, may have to respond to the issue in Parliament when it reconvenes on Monday as the Congress appears to be in no mood to relent on the matter.