An investigation by The Indian Express reveals that Kumar’s companies constitute a key link in an elaborate network (see graphic) of business associations that involve builders in Noida and Greater Noida, national real estate giants Jaypee, Unitech and DLF, and a company linked to the son of Mayawati’s aide and Rajya Sabha member Satish Chandra Misra.
All these companies had, or have, real estate projects in UP.
The firms, contacted by The Indian Express, said that the associations were legitimate (see box), and had nothing to do with the state government. Mayawati herself, in an unusual press conference last week, referred to a questionnaire sent to her by The Indian Express — in connection with this report — and denied any wrongdoing.
Anand Kumar’s flagship, The Hotel Library Club Pvt. Ltd, is the only one among his at least 50 companies — together estimated to be worth over Rs 750 crore in end-March 2012— that existed before 2007. It is headquartered in Mussoorie, and its main business is the Hotel Shilton there. With a share capital of Rs 24 lakh, the holding company had assets worth Rs 287 crore as of end-March 2012 — much of it in cash — up from only Rs 43 crore at the end of March 2008.
In 2007-08, two of Kumar’s business associates and one of their firms were linked to another business group, Carnoustie Management Pvt Ltd, which was registered in Janakpuri, New Delhi, in September 2006.
Between 2010 and 2012, real estate companies DLF and Unitech invested Rs 6 crore and Rs 335 crore respectively in Carnoustie. DLF and Unitech have said that the investments were part of normal business transactions. Both firms, and Jaypee — which is a joint venture partner with Carnoustie — have residential and commercial projects in UP.
Hotel Library Club is also the holding company of three other firms, which had a total bank balance of Rs 320 crore as of end-March 2012. One of the three subsidiaries of Hotel Library Club is Revolutionary Realtors, which earned Rs 60 crore through “speculation business” in 2011-12, and had a bank balance of Rs 54 crore as of end-March 2012.
Tamanna Developers, a subsidiary of Revolutionary Realtors, had a cash surplus of Rs 160 crore as of end-March 2012. As managing director, Anand Kumar earns an annual salary of Rs 1.2 crore each from Hotel Library Club and Revolutionary Realtors.
Real estate developer Deepak Bansal of SDS Group was one of Kumar’s key business associates — a director in Hotel Library Club and in another firm owned by Kumar, called DKB Infrastructure Pvt Ltd.
Bansal, whose firms are building about 2,500 apartments in Noida and Greater Noida, is one of the two main links between Kumar’s companies and the real estate giants who invested in Carnoustie.
Bansal’s SDS Developers is a subsidiary of Carnoustie. Carnoustie is into hospitality, real estate, sports management and security, among other businesses. It had a net worth of about Rs 620 crore in end-March 2012.
Of this, Rs 376 crore was invested by prominent real estate developers, some of whom are business rivals. Between 2010 and 2012, these firms — DLF, Unitech, Shivalik Ventures (a Unitech company) and Omkar Realtors, among others — invested in “Class B equity” (without voting rights) at a premium of Rs 1,490 for a Rs-10 share.
The second link between Kumar and Carnoustie is a chartered accountant named Shubhendu Tewari, who was an initial director in Revolutionary Realtors and Shivanand Real Estate Pvt Ltd, both Kumar’s firms.
Carnoustie has 14 subsidiaries, all of which were incorporated after 2007, the year in which Mayawati came to power. Tewari was initial director in all 14. He was also a director in Kumar’s firms.
Anand Kumar and the Carnoustie group also share a chartered accountant. Prashant Kumar and Associates of 7/8 Punjabi Bagh Extension, New Delhi, represents some key firms of Kumar as well as the entire Carnoustie group.
Carnoustie’s annual report for 2011-12, prepared by Prashant Kumar, lists UK-based Ibonshourne Limited as an associate firm. Ibonshourne is registered in London and its directors include Sameer Gaur, joint managing director of Jaypee Infratech Ltd that built the Yamuna Expressway, and has several real estate projects along the highway. Harish Vaid, company secretary and senior president, corporate affairs, of Jaiprakash Associates Ltd, is a director in Ibonshourne.
One of the firms linked to Tewari and owned by Carnoustie, a Mumbai-headquartered company called Shloka Realtors Private Ltd, is now being probed by Noida authorities for allegedly misrepresenting information to acquire prime land in Noida.
Tewari was a director of Shloka when the land deal was executed in 2011. The allegation against Shloka is that it gave false information to acquire plots in Sadarpur village in Noida, adjacent to the expressway to Greater Noida.
Also being probed on the same charge is Satish Chandra Misra’s son Kapil Misra, who owns a 10,870-sq m plot next to Shloka’s.
Kapil Misra too has business links with Anand Kumar.
Dia Realtors Pvt Ltd, a company owned by Kumar, had Misra as a partner. Dia had total assets of Rs 78.868 crore at the end of March 2012, Rs 78.816 crore of which was in cash. The company with a paid-up capital of Rs 4.31 crore had total expenses of Rs 1.6 lakh during 2011-12.
Experience Project, another Kumar firm, has invested Rs 1.5 crore in Dia Realtors. Diksha Windsor Computers Private Ltd, also a Kumar firm, bought 8,62,500 shares of Dia and two other firms owned by Kapil Misra — Sankalp Advisory Services and Yamunotri Infrastructure and Development Pvt. Ltd — for an unspecified amount in 2011.
Sankalp is registered at an address in Babar Lane in the Bengali Market area of central Delhi. Next door is a hotel called Check Inn, also owned by Misra. In disclosures to the Registrar of Companies relating to his Vijay Fincon Consultants, Misra says he has “substantial interest” in a company called Experience Project Ltd, owned by Anand Kumar and his wife Vichieter Lata.
What mayawati, others said
At a press conference last week, called to respond to a questionnaire from The Indian Express, Mayawati said her brother had no links with real estate companies. “Any claims regarding that are also baseless and without facts,” she claimed, and said there was nothing wrong in his businesses.
Said he would not respond to questions from The Indian Express.
S C Misra
Said his son Kapil “has every right to do legitimate business”.
Rs 5.5 crore was invested in Carnoustie during a joint venture between Omkar and Unitech, which was called off in 2010.
Unitech was not allotted any land, project or FSI/land rights by the BSP government. All our investments are fully disclosed and in compliance with laws.
We made a small investment of Rs 6 crore in Carnoustie, which has been disclosed in our annual accounts of FY 2011-’12.
Did not get any favours from BSP government. Other than acquiring a company called SDS Developers Pvt Ltd, we don’t have any business association with SDS group. We invested in Ibonshourne Ltd in compliance with RBI guidelines. No business association with Mr Anand Kumar or Mr S C Misra.
Carnoustie Group (interests in realty, hospitality, security, consultancy etc.)
has investments of Rs 620 cr from firms such as DLF (Rs 6 crore), Unitech
(Rs 335 crore), who paid Rs-1,490 premium for class B shares
owns 50% of London-based hospitality firm Ibonshourne Ltd. Other 50% owned by officials of JaIPRAKASH Associates Ltd
has cluster of 14 subsidiaries. C.A. Shubhendu Tewari was initial director in all
one subsidiary is SDS Developers, in which Deepak Bansal and SHUBhENDU TEWARI were directors
Deepak Bansal’s SDS group
(group firm got land in noida sec 44 in 2007)
IN 2010, Mayawati’s brother Anand Kumar’s Hotel Library Club Pvt Ltd acquired SDS Infrastructure and got this land
BUT EVEN THEN, Bansal’s SDS Infratech paid for the land
Bansal was also a director of Hotel Library Club and Kumar’s DKB Infra Pvt Ltd
Hotel Library Club Ltd
had balance of Rs 287 cr on Mar 31, 2012, up from Rs 43 cr on Mar 31, 2008
ITS subsidiaries Revolutionary Realtors, Tamanna Developers, DLA Infrastructure together had cash balance of Rs 320 cr in end-March ‘12
SHIVANAND, its subsidiary firm, had Shubhendu Tewari as initial director. Tewari was initial director of Revolutionary Realtors as well.
Floated 49 firms after Maya came to power in 2007. Companies were inactive; had cash balance of Rs 750 cr at the end of March 2012