Not just diamonds, Nirav Modi was also in solar power business; misused bank's money
Data available with IndiaToday.In reveals the solar plant, which is currently operated by NTPC Vidyut Vyapar Nigam (NVVN) Ltd, is owned by Nirav Modi's two shell companies i.e. Camelot Enterprises Pvt Ltd and Firestone Trading Pvt Ltd. These companies were created and managed by Modi and his bogus directors.
- Apr 30, 2018,
- Updated Apr 30, 2018 3:42 PM IST
Prime Minister Narendra Modi on Sunday expressed his delight that every single village of India now has access to electricity. To achieve this task, he saluted the efforts of "all those who worked tirelessly" to make this dream a reality. However, some interesting details have emerged that link diamond merchant Nirav Modi's web of shell companies with India's national electricity grid. The companies owned by Nirav Modi, which apparently got approval during the UPA regime, supplied electricity not only in Maharashtra but several other states across the country.
Not many people are aware that Nirav Modi, the main accused in the Rs 13,700-crore PNB fraud case, owns a solar power plant near Khandala in Ahmednagar district of Maharashtra. Opened under the Jawaharlal Nehru National Solar Mission (JNNSM), the plant is a photovoltaic (PV) project with a power capacity of 5 MW.
The JNNSM was launched on January 11, 2010 by former prime minister Manmohan Singh with an ambitious target of deploying 20,000 MW of grid connected solar power by 2022. It was aimed at reducing the cost of solar power generation in the country.
In March 2018, the Enforcement Directorate (ED) provisionally attached this solar power plant and 134 acres of land, worth Rs 60 crore, belonging to Nirav Modi after an investigation was launched against the fugitive businessman. After this, no specific information was shared by the investigators.
However, IndiaToday.In, during its investigation, found some shocking facts, which may raise serious questions on the Ministry of New & Renewable Energy (MNRE) under the leadership of the UPA government.
Data available with IndiaToday.In reveals the solar plant, which is currently operated by NTPC Vidyut Vyapar Nigam (NVVN) Ltd, is owned by Nirav Modi's two shell companies i.e. Camelot Enterprises Pvt Ltd and Firestone Trading Pvt Ltd. These companies were created and managed by Modi and his bogus directors.
NVVN is a trading body and the subsidiary of NTPC, which handles the solar plants across India. In a telephonic conversation from New Delhi, Arun Kumar Garg, Chief Executive Officer (CEO) of NVVN, confirmed to IndiaToday.In that "the solar plant at Khandala is owned by Firestone Trading Pvt Ltd and, at present, is being operated by NVVN's management team."
Details collected from the website of MNRE, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), Maharashtra Electricity Regulatory Commission, and NVVN revealed that the solar project (Photovoltaic - PV) of 5 MW power capacity at Kalhe near Khandala Villagein Ahmednagar district of Maharashtra was bid and owned by Camelot Enterprises Pvt Ltd (earlier Project Company: Firestone Trading Pvt Ltd) under the JNNSM scheme.
The list of commissioned solar projects having EPA with Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) shows that the date of commissioning of this solar plant (generated by Firestone Trading Pvt Ltd) was September 6, 2012, and the date of EPA was January 5, 2012.
In fact, the MERC's order dated February 20, 2017, stated that MSEDCL has signed a power sale agreement with NVVN for solar project (held by Firestone Trading Co. Ltd) on January 5, 2012, for the purchase of power under the JNNSM Phase (Batch - 1) bundling scheme (solar plus thermal) at a rate of Rs 4 to Rs 4.50 per unit.
Does that mean Modi's solar plant supply electricity only in Maharashtra? NVVN's CEO Garg clarified, "No. The electricity generated from this solar plant is distributed in various power-deficient states of India."
UPA govt sanctioned Modi's solar project
As per a press release issued by Press Information Bureau (PIB) on December 16, 2011, MNRE had launched the Generation Based Incentive (GBI) scheme for solar energy, under which incentive was provided to support small grid solar power projects connected to the distribution grid (below 33 kv) to the state utilities.
Indian Renewable Energy Development Agency (IREDA) had selected 78 projects (both in wind and solar power) with a total capacity of about 98 MW for which the ministry provided GBI of Rs 12.41 per kwh to the state utilities when they directly purchased solar power from project developers, the release stated.
The list of projects sanctioned under MNRE GBI Scheme, 2009-10 (copy is with IndiaToday.In) shows Firestone Trading Pvt Ltd (9th number in the list) with 5 MW capacity and with date of commission of November 6, 2012.
Information regarding this scheme and the selected projects were given by the then Minister of New and Renewable Energy Dr Farooq Abdullah in a written reply to a question in Lok Sabha.
The investigators have raised serious questions against the MNRE and its officials (served during the UPA government) on how a shell company (Firestone Trading) was shortlisted for a solar project during the bidding process.
"It looks like no background check of the company, the directors, the source of income and its experiences in solar power sector were done by the MNRE. Whether the MNRE knew the company bidding is a shell company or owned by a diamond trader. Some questions need answers," the investigator asked. Now, in March 2018, after the exposure of the PNB fraud, the list of shell companies getting probed by multi-agencies in India was tabled before Parliament by the ministries concerned. The list also includes both these companies i.e. Firestone Trading and Camelot Enterprises.
Modi diverted bank's money
As per the records from Ministry of Corporate Affairs (MCA), the last AGM of both shell companies was held on August 30, 2017, and its balance sheet was last filed on March 31, 2017. These companies share a common email id companysecretary@firestardiamond.comand a common director i.e. Hemant Bhatt.
Noteworthy, Hemant Bhatt, a close confidant of Nirav Modi, was among the first to get arrested by the Central Bureau of Investigation (CBI) in the PNB fraud case. The probe revealed that Bhatt was the director in 15 of Modi's group firms.
Investigators confirmed IndiaToday.In that Nirav Modi used Firestone Trading to acquire a solar project from the MNRE, and later, diverted the bank's money into solar power business for his own benefits.
"Modi's intention was to diversify into a new business, divert the bank's money into it, and generate a profitable revenue for himself," a source said. Despite being provisionally attached by the ED, the solar plant is operational and managed by NVVN. The investigative agency has directed NVVN to deposit the revenue collection coming out of Modi's solar plant into a separate bank account and keep reporting them on a regular basis.
NVVN's CEO Garg also confirmed IndiaToday.In, "We have been directed by the ED not to handover any revenue (generated from solar plant) to Nirav Modi. NVVN is following the directions".
Farmers' land bought at throwaway prices
The companies grabbed the agricultural land at throwaway prices from the farmers of Khandala, Goikarwada and Kaprewadi on the Karjat-Jamkhed road in Ahmednagar district.
As reported, Firestone Trading had purchased the 250-acre parcel of land from around 100 farmers at a paltry price of Rs 15,000 to Rs 25, 000 per acre between 2010 and 2012. "At the time of acquiring the plots, the farmers were assured that one member of each family will be given a job," a farmer said. On the contrary, as per the records at Karjat sub-registrar's office, quoted by one newspaper, Firestone Trading and Nirav Modi had paid around Rs 1.4 crore for 85 acres of land i.e. around Rs 79,216 to Rs 2.43 lakh per acre on average.
As reported, villagers, under the aegis of Kali Aai Mukti Sangram, has approached Chief Minister Devendra Fadnavis and district collector with a demand to return back their lands for sowing from June onwards.
Prime Minister Narendra Modi on Sunday expressed his delight that every single village of India now has access to electricity. To achieve this task, he saluted the efforts of "all those who worked tirelessly" to make this dream a reality. However, some interesting details have emerged that link diamond merchant Nirav Modi's web of shell companies with India's national electricity grid. The companies owned by Nirav Modi, which apparently got approval during the UPA regime, supplied electricity not only in Maharashtra but several other states across the country.
Not many people are aware that Nirav Modi, the main accused in the Rs 13,700-crore PNB fraud case, owns a solar power plant near Khandala in Ahmednagar district of Maharashtra. Opened under the Jawaharlal Nehru National Solar Mission (JNNSM), the plant is a photovoltaic (PV) project with a power capacity of 5 MW.
The JNNSM was launched on January 11, 2010 by former prime minister Manmohan Singh with an ambitious target of deploying 20,000 MW of grid connected solar power by 2022. It was aimed at reducing the cost of solar power generation in the country.
In March 2018, the Enforcement Directorate (ED) provisionally attached this solar power plant and 134 acres of land, worth Rs 60 crore, belonging to Nirav Modi after an investigation was launched against the fugitive businessman. After this, no specific information was shared by the investigators.
However, IndiaToday.In, during its investigation, found some shocking facts, which may raise serious questions on the Ministry of New & Renewable Energy (MNRE) under the leadership of the UPA government.
Data available with IndiaToday.In reveals the solar plant, which is currently operated by NTPC Vidyut Vyapar Nigam (NVVN) Ltd, is owned by Nirav Modi's two shell companies i.e. Camelot Enterprises Pvt Ltd and Firestone Trading Pvt Ltd. These companies were created and managed by Modi and his bogus directors.
NVVN is a trading body and the subsidiary of NTPC, which handles the solar plants across India. In a telephonic conversation from New Delhi, Arun Kumar Garg, Chief Executive Officer (CEO) of NVVN, confirmed to IndiaToday.In that "the solar plant at Khandala is owned by Firestone Trading Pvt Ltd and, at present, is being operated by NVVN's management team."
Details collected from the website of MNRE, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), Maharashtra Electricity Regulatory Commission, and NVVN revealed that the solar project (Photovoltaic - PV) of 5 MW power capacity at Kalhe near Khandala Villagein Ahmednagar district of Maharashtra was bid and owned by Camelot Enterprises Pvt Ltd (earlier Project Company: Firestone Trading Pvt Ltd) under the JNNSM scheme.
The list of commissioned solar projects having EPA with Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) shows that the date of commissioning of this solar plant (generated by Firestone Trading Pvt Ltd) was September 6, 2012, and the date of EPA was January 5, 2012.
In fact, the MERC's order dated February 20, 2017, stated that MSEDCL has signed a power sale agreement with NVVN for solar project (held by Firestone Trading Co. Ltd) on January 5, 2012, for the purchase of power under the JNNSM Phase (Batch - 1) bundling scheme (solar plus thermal) at a rate of Rs 4 to Rs 4.50 per unit.
Does that mean Modi's solar plant supply electricity only in Maharashtra? NVVN's CEO Garg clarified, "No. The electricity generated from this solar plant is distributed in various power-deficient states of India."
UPA govt sanctioned Modi's solar project
As per a press release issued by Press Information Bureau (PIB) on December 16, 2011, MNRE had launched the Generation Based Incentive (GBI) scheme for solar energy, under which incentive was provided to support small grid solar power projects connected to the distribution grid (below 33 kv) to the state utilities.
Indian Renewable Energy Development Agency (IREDA) had selected 78 projects (both in wind and solar power) with a total capacity of about 98 MW for which the ministry provided GBI of Rs 12.41 per kwh to the state utilities when they directly purchased solar power from project developers, the release stated.
The list of projects sanctioned under MNRE GBI Scheme, 2009-10 (copy is with IndiaToday.In) shows Firestone Trading Pvt Ltd (9th number in the list) with 5 MW capacity and with date of commission of November 6, 2012.
Information regarding this scheme and the selected projects were given by the then Minister of New and Renewable Energy Dr Farooq Abdullah in a written reply to a question in Lok Sabha.
The investigators have raised serious questions against the MNRE and its officials (served during the UPA government) on how a shell company (Firestone Trading) was shortlisted for a solar project during the bidding process.
"It looks like no background check of the company, the directors, the source of income and its experiences in solar power sector were done by the MNRE. Whether the MNRE knew the company bidding is a shell company or owned by a diamond trader. Some questions need answers," the investigator asked. Now, in March 2018, after the exposure of the PNB fraud, the list of shell companies getting probed by multi-agencies in India was tabled before Parliament by the ministries concerned. The list also includes both these companies i.e. Firestone Trading and Camelot Enterprises.
Modi diverted bank's money
As per the records from Ministry of Corporate Affairs (MCA), the last AGM of both shell companies was held on August 30, 2017, and its balance sheet was last filed on March 31, 2017. These companies share a common email id companysecretary@firestardiamond.comand a common director i.e. Hemant Bhatt.
Noteworthy, Hemant Bhatt, a close confidant of Nirav Modi, was among the first to get arrested by the Central Bureau of Investigation (CBI) in the PNB fraud case. The probe revealed that Bhatt was the director in 15 of Modi's group firms.
Investigators confirmed IndiaToday.In that Nirav Modi used Firestone Trading to acquire a solar project from the MNRE, and later, diverted the bank's money into solar power business for his own benefits.
"Modi's intention was to diversify into a new business, divert the bank's money into it, and generate a profitable revenue for himself," a source said. Despite being provisionally attached by the ED, the solar plant is operational and managed by NVVN. The investigative agency has directed NVVN to deposit the revenue collection coming out of Modi's solar plant into a separate bank account and keep reporting them on a regular basis.
NVVN's CEO Garg also confirmed IndiaToday.In, "We have been directed by the ED not to handover any revenue (generated from solar plant) to Nirav Modi. NVVN is following the directions".
Farmers' land bought at throwaway prices
The companies grabbed the agricultural land at throwaway prices from the farmers of Khandala, Goikarwada and Kaprewadi on the Karjat-Jamkhed road in Ahmednagar district.
As reported, Firestone Trading had purchased the 250-acre parcel of land from around 100 farmers at a paltry price of Rs 15,000 to Rs 25, 000 per acre between 2010 and 2012. "At the time of acquiring the plots, the farmers were assured that one member of each family will be given a job," a farmer said. On the contrary, as per the records at Karjat sub-registrar's office, quoted by one newspaper, Firestone Trading and Nirav Modi had paid around Rs 1.4 crore for 85 acres of land i.e. around Rs 79,216 to Rs 2.43 lakh per acre on average.
As reported, villagers, under the aegis of Kali Aai Mukti Sangram, has approached Chief Minister Devendra Fadnavis and district collector with a demand to return back their lands for sowing from June onwards.