Uttarakhand tourism project gets three bids, all controlled by Ramdev aide Balkrishna: Report

All the three companies that bid for the promotion of adventure tourism near Mussoorie’s George Everest Estate, including the one that was finally given the project, had the same shareholder, Acharya Balkrishna, found an investigation by The Indian Express. The Uttarakhand government had floated the tender for the project in December 2022. It aimed to give 142 acres, parking, pathways, a helipad, five wooden huts, a café, two museums and an observatory, developed by the Uttarakhand Tourism Development Board, for an annual concession fee of Rs 1 crore. 

According to The Indian Express report, Acharya Balkrishna, co-founder and managing director of Patanjali Ayurved Ltd and Baba Ramdev’s trusted aide, violated tender norms.

Balkrishna holds more than 99 per cent stake in two of the three bidders, Prakriti Organics India Pvt Ltd and Bharuwa Agri Science Pvt Ltd. In the third company, Rajas Aerosports and Adventures Pvt Ltd that was finally given the letter of award in 2023, Balkrishna had 25.01 per cent stake at the bidding stage. Months after it was awarded the letter, Balkrishna held a majority shareholding of 69.43 per cent.

Moreover, Prakriti and Bharuwa that bid along Rajas, acquired 17.43 per cent in it in October 2023. Separately, four other companies, Bharuwa Agro Solution, Bharuwa Solutions, Fit India Organic and Patanjali Revolution, all owned by Balkrishna, acquired 33.25 per cent in Rajas.  

There is a categorical undertaking that is signed by bidders, clearly stating that they have not “acted in concert or in collusion with any other bidder or other person/s and also not done any act, deed or thing which is or could be regarded as anti-competitive”. The tender instructions also say that if the Uttarakhand Tourism Development Board (UTDB) finds the operator “engaged in corrupt or fraudulent practices in competing for or in executing the contract”, the contract would be terminated. 

However, tourism officials indicated that anyone was open to bid and it was not unusual for some to have shareholding in other companies. They also said there was no witch hunt there, and the letter goes to the highest bidder.

In fact, the report stated that the Uttarakhand government pushed to involve Rajas in more key projects. Balkrishna was not a shareholder when Rajas was incorporated by brothers Mayank Saini and Manish Saini in 2013, but became a shareholder in July 2018. After the letter of award was issued to Rajas, more companies linked to Balkrishna became shareholders of the firm. 

Out of the six shareholding companies of Rajas, the date of entry of five companies – Prakriti Organics India, Patanjali Revolution, Bharuwa Agro Solution, Bharuwa Agri Science and Fit India Organic – in the register is October 9, 2023. Bharuwa Solutions was entered in the company’s register on January 17, 2024. Under section 88 of the Companies Act, companies have to maintain a register showing members and shares held by them.

Balkrishna is the majority shareholder in all the six companies. He 99.85 per cent stake in Bharuwa Agri Science Private, 99.98 per cent in Prakriti Organics India, 99.99 per cent in Bharuwa Solutions, 99.98 per cent in Fit India Organics, 99.94 per cent in Patanjali Revolution, and 99.99 per cent indirectly in Bharuwa Agro Solutions, the report stated.