GIFT-City Gujarat Needs SFIO Probe, says Petitioner. By Sucheta Dalal & Yogesh Sapkale
Dr DC Anjaria,
independent director and former audit committee chairman of Gujarat
International Finance Tec-City—GIFT City, had filed a fresh civil application
demanding investigation of GIFT-City by Serious Fraud Investigation Office
(SFIO), as has been ordered by the NCLT (National Consumer Law Tribunal) with
respect to the beleaguered parent—Infrastructure Leasing & Financial
Services (IL&FS). Dr Anjaria's original
petition had alleged that this Rs70,000-crore
GIFT-City
project had virtually been gifted away to the private sector
partner, IL&FS, leading to massive losses to the government and the people.
He also alleged falsification in accounts, and incorrect recording of audit
committee meeting at GIFT-City. The new application has also added names of
fresh respondents, including a former Whole Time Member of SEBI (Securities
& Exchange Board of India).
In his civil
application to the 2016 Writ petition No 260 of 2015 (PIL) filed last week, Dr
Anjaria says, "...in view of findings of regional director, ministry of
corporate affairs (MCA), Mumbai, that affairs of IL&FS and its group
companies are carried out prejudicial to public interest, the affairs of
GIFT-City are also required to be investigated by SFIO for two reasons. "Firstly,
IL&FS has a 50% stake in GIFT-City and there it is part of the one of the
group companies of IL&FS. Secondly, three senior directors on the board of
GIFT-City are also part of board of directors removed by the National Company
Law Tribunal (NCLT) at Mumbai. They are Hari Sankaran, K Ramchand and Arun
Saha. The presence of these three persons on the board of GIFT-City is
apparently inimical to the public interest,” Dr Anjaria added. He has also alleged
that there was falsification of accounts by not recognising income against the
guidance note issued by Institute of Chartered Accounts of India (ICAI) and
falsification and incorrect recording of minutes of the audit committee meeting
presided by him.
Dr Anjaria, who
originally designed the concept of GIFT City, alleges that Prof JR Varma of
IIM-Ahmedabad (former whole-time member of SEBI) was appointed as independent
director and as chairman of the audit committee after he was relived of his
position as chairman of the audit committee. Dr Anjaria ceased to be
independent director on the GIFT-City board six months later. Prof Varma is
accused of having approved of the minutes of the meeting, held six months
earlier and presided over by Dr Anjaria, that too when he was not even a member
of the Gift-City board at that time and had not attended the meeting. He
further says that the minutes were approved, despite his notice to Prof Varma,
making him party to what is alleged to be “falsification and incorrect
recording of the minutes book.” "Ramakant Jha,
the then chief executive of GIFT-City connived with Dipesh Shah, Head (IFSC
& Strategy), GIFT-City and compliance officer for falsification and
incorrect minutes," Dr Anjaria alleges... read more:
