Ramesh Abhishek creates his own Make in India via Kolkata!

A critical look into the assets of IAS Officer Ramesh Abhishek reveals a faux Make in India model to use shell companies to park illegal gains

A critical look into the assets of IAS Officer Ramesh Abhishek reveals a faux Make in India model to use shell companies to park illegal gains
A critical look into the assets of IAS Officer Ramesh Abhishek reveals a faux Make in India model to use shell companies to park illegal gains

Parts 1 and 2 of this series can be accessed here. This is Part 3.

In December 2018, a small news item appeared in the Times of India, stating that Over 1 lakh shell companies were de-registered in the 2017-18 fiscal year[1]. It would be useful to know how many of these shell entities were opened/ used and operated by the Babus themselves. A look at the number of shell companies that were owned and operated by Ramesh Abhishek Agrawal (RA) will give you an idea of the rot that has set into the system.

JISPL – Jagdamba Iron & Steel Private Limited

Does the name sound grand, like the one Tatas operate in Jamshedpur? Well, JISPL exists only in name and has huge reserves despite the fact that it has earned no profits and never paid taxes. The tax evasion part needs to be examined separately and is not a topic of discussion here. Now, just to confuse the reader, there is another entity, an alphabet soup, titled Jagdamba Steel Industries Private Limited (JSIPL), which in turn is a shareholder in JISPL. The shareholding pattern of JISPL looks as follows:

Figure 1. JISPL Shareholding pattern
Figure 1. JISPL Shareholding pattern

Almost 97% of JISPL is owned by either the relatives of Ramesh Abhishek or his other company JSIPL. The attached file below shows the details of how this company got close to Rs.10 crores in its balance sheet. This money was received as a share premium from the shareholders. Why would a company that has no products to sell, attract such high valuations in its Stock price? Read on…

Who owns JSIPL?

JSIPL received various subscriptions of shares at hefty premiums in the years 2008, 2009 and 2014. All these were from the famous Kolkata Khoka Kompanies (KKK). This is for the year 2008. For more, see the table below:

Name of the Kolkata Co. No. of shares Premium per share (Rs.) Present status of the company
Badrinath Commerce Pvt. Ltd. 340 2900  
Bhagwati Merchants Pvt. Ltd. 500 2900  
Balgopal Dealers Pvt. Ltd. 500 2900 This company is struck off from ROC as shell company
Ganpati Stock Pvt. Ltd. 340 2900  
Total 1680

In the Fiscal year ending on March 31, 2009, more shares were allotted to KKKs at a hefty premium of Rs.3000 per share. See the table below for more:

Name of the Kolkata Co. No. of shares Premium per share (Rs.) Present status of the company
Parampita Dealcom Pvt. Ltd. 800 3000 This company is struck off from ROC as shell company
Badrinath Commerce Pvt. Ltd. 340 3000  
Bhagwati Merchants Pvt. Ltd. 335 3000  
Anjaniputra Vinimay Pvt. Ltd. 835 3000  
Vaibhav Vinimay Pvt. Ltd. 670 3000  
Gangaur Properties Pvt. Ltd. 535 3000 This company is struck off from ROC as shell company
Vindhyawasini Vincom Pvt. Ltd. 500 3000  
Urch Traders Pvt. Ltd. 540 3000  
Total 4555

JSIPL received crores of rupees from KKKs and these were deployed into JISPL over FY 2008, 2009 and 2014, brought in through KKKs. Once the money is transferred into JSIPL, these KKKs were abandoned (it is called as premium stripping) and the latest shareholding pattern of JSIPL (JISPL is shared in Figure 1 above) is shown in Figure 2.

Figure 2. JSIPL Shareholding pattern
Figure 2. JSIPL Shareholding pattern

So the circle is complete – JSIPL owns JISPL and vice-versa. A few KKKs were used and discarded. Worthless company shares bought for sky-high premiums. And Ramesh Abhishek Agrawal has created Rs.9.67 crores in JISPL and Rs.9.18 crores in JSIPL for a total of Rs.18.85 crores – What a Make in India initiative by the family of RA! We know we skipped a couple of steps here – but you can get all the gory details by going through the Auditor’s report below. This sleight of hand (jugaad) can be done over and over. Say 10 such entitites exist – the corruption amount becomes Rs.200 crores. 100 makes it Rs.2000 crores.

CA Report of JISPL by PGurus on Scribd

Continued…

References:

[1] Over 1 lakh shell companies deregistered this fiscal: GovernmentDec 28, 2018, Times of India

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.
Team PGurus

4 COMMENTS

  1. Ya-tha Raja Ta-tha -praja ! Most of the central and state government employees are arrogant. Since 2014 every government employee feels that S/he is the Boss!

    NDA Govt 1 treated every business man/entrepreneur/trader……… as a criminal but treated every corrupt bureaucrat/officer as a gentleman! It is said a man is known by the company he keeps! Similarly 2014 May 2019 BJP lead NDA Govt 1 continued with UPA1&2 corrupt staff along with bureaucrats to run all ministries and PMO and failed to generate promised employment!

    Bureaucrats like Abhishek /his daughter’s dubious consulting firm thrive,expand,float shell companies and still survives to make a fast buck due to the following reasons too:-

    The then NDA Govt1 law minster said if anyone makes allegation on a corrupt officer onus is on the accuser! Informers should be protected in a 65 years of rotten system. Why liaising agents/CA/CS risk their careers? Hence corruption thrives. In all state and central government departments there is a vigilance cell and their big notice board informs visitors not to pay “bribes” to anyone. In fact these notice boards laugh at visitors/ company representatives and vice versa! Because without greasing (congress-I corrupt) palm (symbol) not possible to get things done! Rs.2000/- new notes have become easy denomination to indulge in corruption!

    5th July 2019 Budget presentation Socialist FM announced a TV channel for Start Ups India reform l! Intention is good. Entrepreneurs shall not have time to watch sarkari start-up programs. Once entrepreneurs initiate registration process under various GOI and or state government schemes including start up always end up thinking on compliance documentation post registration and paying taxes. Self-certification process later catches entrepreneur by collar if government change at the centre and in state and corruption continues to leave the victim of the hook.

    Question for instance, why a software company compelled to register under Shops and establishment Act and take Trade License? Even after GST why Profession Tax is still collected by the state/local government? Compliance dates almost keeps entrepreneurs busy and keeps coming month on month. When will the start up or entrepreneur actually start “exports” or produce “goods” or give “services” to his/her domestic or international clients? One should not expect fresh entrepreneur to generate more employment to fill government coffers through paying taxes. Entrepreneur is left with no money to meet all kinds of taxes not yet subsumed under GST and State Governments do not abolish some of the left overtaxes. More registrations, schemes and licenses more corruption! is the end result.

    Under certain schemes, registration checklist goes hand in hand with babudom’s regional office/ personalised checklists compelling entrepreneurs to submit this or that document! These checklist are not there in foreign trade policy. And the same checklist cautions entrepreneurs not to hire services of agents/ Consultant/ CA/ CS/ Self-employed service providers having domain knowledge!! At this backdrop, why a doctor needs help of a nurse? Why a lawyer needs service of his junior? Why DG/Director need so many joint /deputy/assistant directors with lower cadre data entry fellows? Why CM/PM need so many minsters under them? .

    Central and State govt officials insists for CEO/Director to appear before them every now and then!! Authorization letters are not accepted. Upon disputes, Public Hearing means the effected entrepreneurs with or without his service provider’s assistance has to resolve issues face to face. But service providers are not allowed by hot headed officers!! Then why call meeting as “public”? If service providers are prevented, I am sure entire economic system will crash. If any start up intends to pull down the shutters exit process is cumbersome with a different checklist. Most of the staff is untrained like in Banks. Entrepreneur’s grievance remains as start-up stage only!

    We hear funny corrupt stories and corrupt procedures!
    Under various GOI schemes online submissions and hard copy submission is also insisted! Procedures have become tedious post GST. Pre GST refunds are a scam! For instance, if the total refund “demands” are at rs.100 crores, Government releases only rs.20 crores!! Those who have political influence/can pull strings will get it and for others just bribes on percentage basis funds are released. If the refund amount is huge percentage comes down and if the refund is small bribe percentage climbs up.

    Under PM Modi’s administration each minister holds on an average two ministries! Under such ministries a DG/CEO continues to set up his corrupt ecosystem for over ten years thus generating same old corrupt /sick ideas and mislead the new minister/government! And Kapil Sibal and Manu Singhvi gets “bail after bails” for sick brains if a case id filed!! Hence Ramesh Abhishek and his daughter may be extended family and friends makes brisk business!!

    Efficiency and quality of service in the governmental departments came down! Employment generating ministries are given to the dumbest! If policies, procedures and schemes are fine-tuned many ministries will create employment under this or that existing schemes.

    Wealth creation is lost but doles and corrupt officers prevail! For how long?
    Hence people like Abhishek and his daughter have become parasites on this or that GOI/state govt schemes. Such people create one customer care number happens to be a wrong number /none answer calls and online grievance redressal software does not respond even after 72hours! So GOI itself has become a start up!

    SG/MMS worked for 10hours a day and produced massive scams out of which/if taxed we can wipe-out poverty in the country. I am of the opinion that PM Modi is wasting 18 hours a day at the backdrop of rotten system by taking services of inefficient and corrupt officers and hurting regional newly elected MPs aspirations too!

    Pgurus is the only media brings up such news only to be ignored by PMO! Pgurus Team’s observation is correct, despite creating a royal mess at the FMC and now at DPIIT, Ramesh Abhishek still hopes to land a cushy post, post-retirement and after retirement NDA1 likes crooks to be around. Ramesh Abhishek may guide his daughter as a “consultant” for Start-ups India reforms from behind. And CBI inquiry or ED raids take place just before elections!!

  2. It’s an established fact that the PCs, RAs, PRoys, IPS bosses of the Sharada chitfund scams, RV and Raga SG are not only scot free but enjoying the fruits of their ill gotten fortunes from the poor masses. PM must drain the swamp, lock them up in Andamans and throw the keys away.

  3. Is it not too suggestive that, despite your courageous work, this element should still enjoy so much clout at the highest level as to remain out of jail? This is why I have been writing since long that corruption is a prerequisite in India for success in any field–especially in one’s career in the bureaucracy. Unjust enrichment is the accepted path to glory and success in India, especially for those in govt service from top to the bottom and, let us admit, nobody has the courage to even begin a war against corruption. It would be like the poet Kalidas cutting the very branch on which he was sitting.

LEAVE A REPLY

Please enter your comment!
Please enter your name here