Why was company run by Amit Shah's son shut down ahead of demonetisation, asks Congress

"We are not levelling any allegations (of criminality) in this. But it should be made public which commodities were exported/imported."
Why was company run by Amit Shah's son shut down ahead of demonetisation, asks Congress
Why was company run by Amit Shah's son shut down ahead of demonetisation, asks Congress
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The Congress on Monday demanded to know why Temple Enterprises, a firm owned by BJP chief Amit Shah's son Jay Shah, shut down four weeks before the November 8 demonetisation, and demanded the setting up of an inquiry commission of two sitting judges of the Supreme Court to look into alleged irregularities in the companies owned by the junior Shah.

"We are not levelling any allegations (of criminality) in this. But it should be made public which commodities were exported/imported by Jay Shah's firm Temple Enterprises and to which countries so that they earned Rs 51 crore from foreign countries and their turnover swelled by 16,000 times," Congress leader and former Union Minister Anand Sharma said.

"And after showing a sudden spike of 16,000 times in its turnover, why did the company suddenly shut down just ahead of demonetisation?" Sharma said.

Temple Enterprise Private Limited, in which Amit Shah's son Jay Shah was a director, was incorporated on August 23, 2004. 

On Sunday, Congress leader Kapil Sibal said at a media briefing that Temple Enterprises had recorded losses in 2012-2013 and 2013-2014 of Rs 6,230 and Rs 1,724, respectively but showed a profit of about Rs 18,000 in 2014-15.

But the following year (in 2015-16), the company's turnover jumped to Rs 80 crore, he said.

"This is beyond comprehension as to why persons who had the potential to raise their company's turnover 16,000 times in a year, and who got Rs 51 crore from foreign countries, would suddenly decide to shut down the company," Sharma said.

He said if any other company would have shown such hike in turnover, the Enforcement Directorate (ED) and the Income Tax Department would have landed at their door to find out how it happened. 

The Congress also demanded to know how many firms, especially those without any prior experience or core competence in renewable energy, were extended loans of Rs 10 crore or above by government-owned Indian Renewable Energy Development Authority (IREDA).

The IREDA, a PSU under the Ministry of New and Renewable Energy, had extended a loan of Rs 10.35 crore to Kusum Finserve, a company owned by Jay Shah that dealt in shares and stocks before getting a contract to build a 2.1 MW windmill in Ratlam, Madhya Pradesh.

"What is the status of that windmill as of now. Does a windmill exist at the site?" Sharma said.

"We request the Prime Minister to break his silence over this issue and constitute an inquiry commission consisting of two sitting judges of the Supreme Court to look into the matter. If there is no irregularity, let it come into the public domain," the Congress leader said. 

Sharma also alleged that the loan of Rs 25 crore given by Kalupur Cooperative Bank to Kusum Finserve against a security of Rs 7 crore was not in conformity with the RBI guidelines.
 

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