 "Prem Chand Gupta")
As Lalu Prasad declared war against the Modi government after his Rashtriya Janata Dal (RJD) emerged the single largest party in Bihar, his man in Delhi is likely to have busy days ahead. RJD leader and former Union minister Prem Chand Gupta is already counted among the party's candidates for nominations to the Rajya Sabha.
Considered the 'business' face of the party, Gupta declared assets of Rs 6.44 crore in his mandatory affidavit at the time of nomination to the Rajya Sabha in 2008. A little over 70 per cent of these assets or Rs 4.6 crore were in the form of immovable assets such as agricultural land and buildings. His declaration showed he owned shares/debentures worth Rs 53.7 lakh.
Gupta had in his subsequent 'declaration of interests' to the Rajya Sabha in 2011 and 2012 said he did not hold any remunerative directorship in any Indian company or a controlling shareholding in local companies.
However, though Gupta does not have direct interests in Indian companies, his three immediate family members do. According to data from the ministry of corporate affairs (MCA), his wife, Sarla Gupta, and sons Mayur Gupta and Gaurav Guptaa, are on the board of directors of about two dozen companies.
Sarla Gupta had held directorship in 24 companies and one limited liability partnership (LLP), according to MCA. Of these, she has over the years stepped out of 11 and continues her association with 14 entities. The companies have varied interests, from real estate to software and mining. Her current directorships are in Gurgaon Infospace, Neil Builders, Antique Investments, Delux Investments, Eastern India Power and Mining, IST, IST Steel and Power, IST Conbuild, IST Green Power, IST Softech, KIKI Properties, Vinayak Infra Developers and Mercantile Realtors. And, a designated partner in IST Finvest, an LLP.
Mayur Gupta, who had been associated with 20 entities, holds 13 directorships. Gaurav Guptaa holds 18 directorships of the 25 entities he was on board.
While Gaurav was listed as a designated partner in Madhohari Realty and Trade Ventures LLP in 2014, Mayur became designated partner of Prosper Realty and Ventures LLP. Also a designated partner of IST Finvest, along with his mother.
Only one of these many entities, IST Ltd, is a listed company. IST was thinly traded and closed at Rs 585 on Friday on the BSE. At this price, the company was valued at Rs 341 crore. The promoter holding of 74.99 per cent held by the Gupta family would be worth Rs 255.85 crore. As on September 30 filings with BSE, 49.95 per cent is held by a Hong Kong-based company called Gupta International Investment Company. Other Gupta family entities such as Antique Investments, Galaxy International Hotels, GPC Technology and Delux Investment hold the rest.
According to Hong Kong company records reviewed by Business Standard, Gupta International Investment Co was incorporated in 1978. It had seven directors - Prem Chand Gupta, Sarla Gupta, Mayur Gupta, Shalini Gupta, Rajesh Agarwal, Gul Asaram Wadhwa and Arun Kumar.
The records showed Prem Chand Gupta was appointed director of this company on January 15, 2004. However, BSE records show Gupta International's holding in IST dated back to June 2001, the first such shareholder filing available for the company on the exchange's website. For financial year 2014-15, IST reported a profit of Rs 2.5 crore on revenue of Rs 18.4 crore. For the June quarter, it reported Rs 63-lakh profit on revenue of Rs 4.5 crore.
IST and two other companies, Neil Builders and IST Technology Infrastructure, also controlled by the Gupta family, together owned close to 100 per cent in IST Steel and Power. The latter entity has a capital base of Rs 49.7 crore and was allocated the Dahegaon Makarad coal block in June 2009. Bharatiya Janata Party leader Kirit Somaiya had complained to the Central Bureau of Investigation that these were influenced by Gupta, who was a minister in the UPA-I government. Gupta had denied any wrongdoing, saying his ministership ended in May 2009. The block was de-allocated by the coal ministry in September 2012. The de-allocation recommendation came from an inter ministerial group, following a probe into the 'coalgate' scam.
