Rajkot based Lodhia, Dabur boss among “black money holders” names given to SC

New Delhi, 27 October 2014

Names of three “black money holders” that are to be handed over to Supreme Court today are out: They are Pradeep Burman who is Director of Dabur group, Pankaj Chimanbhai Lodhia who is a bullion trader and Radha Tombolo who is a Goa based miner. Of these three, Mr. Lodhia is based in Rajkot. The government of India is likely to hand over more names to court in future. News agencies report that Dabur group has clarified that all accounts abroad are legitimate.

Lodhia who owns Shreeji and Tatva jewellery brand showroom in Rajkot and also into real estate business, when asked about this development, told media persons that he had no Swiss bank account. He said he came to know about this development only through media. He said he had submitted the details of his financial transaction before the Income Tax department during recent scrutiny. He said he will react to the department once he is officially communicated about the issue.

It should be mentioned that today’s development in court is not regarding HSBC bank accounts.

In another development, it has come to notice through highly placed sources in Finance ministry that at least four Congress party leaders are also in the list. Their names are not declared yet before the court, as investigation is going on at present. One of them is former minister of state in UPA-2 government. The others include prominent Maharashtra politician’s wife and son, and a former Uttar Pradesh MP who lost Lok Sabha election early this year.

Foreign bank account legal: Dabur

New Delhi, Oct 27 (IANS) Pradeep Burman’s foreign bank account was “opened when he was an NRI, and was legally allowed to open this account”, Dabur India said Monday in an official statement.

Pradeep Burman is a member of the promoter family of Dabur India.

“The Burman family is committed to the highest standards of corporate governance and encourage ethical behaviour at all levels. We wish to state that this account was opened when he was an NRI and was legally allowed to open this account.

“We have followed all the laws and the complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable. Therefore, it is unfortunate that every person having a foreign bank account is being painted with the same brush,” the official statement said.

Pradeep Burman was once a wholetime director of Dabur India but he does not hold any executive position in the company now.

Dabur India is a 130-year-old fast moving consumer goods (FMCG) company that started its journey from erstwhile Calcutta and has around 200 plus products in its portfolio.

The company’s stocks were trading at Rs.209.10 per share down 3.10 percent at 2.45 p.m. in the Bombay Stock Exchange.

The central government Monday disclosed names of three people, including Pradeep Burman, who are holding bank accounts in foreign countries and are now under the lens of Income Tax authorities.

Will have to study government affidavit first: Radha Timblo

Panaji, Oct 27 (IANS) Goan mining magnate Radha S. Timblo, who is among the three individuals accused by the Centre of stashing black money in Swiss banks, said that she needs to study the government’s affidavit to the apex court before commenting.

“I will have to study the affidavit first,” she said when asked for her comment, and added that she will give her reaction to the Supreme Court.

Timblo, runs Timblo Pvt. Ltd from Goa, one of the many mining companies accused of carrying out illegal mining by the Justice M. B. Shah commission, which exposed a Rs. 35,000 crore illegal mining scam in the state.

Timblo, along with Dabur’s Pradip Burman and Rajkot-based builder Pankaj Lodhia has been named by the central government in its affidavit for having black money stashed abroad.

‘Radha Timblo was operating mine on a Pakistani’s behalf’

Panaji, Oct 27 (IANS) Goan mining magnate Radha S. Timblo, accused of stashing black money in a Swiss bank, was indicted by an apex court committee in 2012 for illegally operating a mining lease with a questionable power of attorney executed by a Pakistani national.

A judicial commission headed by former Supreme Court Judge M.B. Shah probing Goa’s mammoth illegal mining scam had also named a Radha Timblo-operated firm of illegal mining practices.

Shah now heads the central government’s Special Investigating Team probing black money stashed by Indian nationals in foreign banks.

The apex court’s Central Empowered Committee (CEC) which was probing several aspects of Goa’s illegal mining scam, in its report to the Supreme Court said that the Timblo’s company had been operating a mine in the name of a foreign national, which is a violation of the Mining Concession Rules, 1960.

“The ownership and control of the said lease by the Timblo family (via firm Timblo Pvt. Ltd.) was justified by them by producing before the state government another power of attorney dated November 5, 1997, stated to have been executed by Mavani in favour of Radha S. Timblo. In the said power of attorney, it is mentioned that Mavani is staying in Karachi, Pakistan,” the CEC report had said, adding that the power of attorney was neither notarized, nor signed in witnesses’ presence.

The CEC probe was ordered by the apex court on the heels of the Shah Commission report which in 2011 uncovered a Rs.35,000-crore scam in which politicians, bureaucrats and nearly every big mining company, including Timblo Private Limited, was linked.

“The state of Goa was fully aware of the serious illegalities involved. However, instead of taking punitive action in accordance with the law, it disregarded the serious illegalities and chose to grant renewal of the mining lease in favour of the partnership firm owned and under control of Timblo family, which should not have been permitted,” it added.

The Justice Shah report had also said that the Timblo-run company was under-invoicing iron ore exported by it.

Speaking to reporters outside her office, Radha Timblo said that she would issue a press statement only after a going through the affidavit filed by the central government in the Supreme Court.

“I will give my reaction to the Supreme Court,” she added.

Timblo, along with Dabur’s Pradip Burman and Rajkot-based builder Pankaj Lodhia, has been named by the central government in its affidavit for having black money stashed abroad.

Rajkot company incommunicado after Swiss bank revelations

Ahmedabad (Gujarat), Oct 27 (IANS) Top officials in the Shreeji Group in Rajkot have become incommunicado following revelations by the central government that an owner of the company held Swiss bank account/s.

The central government, in its affidavit to the Supreme Court Monday, named Pankaj Chimanlal Lodhiya, a bullion trader from Rajkot as the holder of accounts in a Swiss bank, among others.

According to the company’s website, the Shreeji Group comprises Shreeji Trading Company, Shreeji Ornaments Pvt. Ltd. and Shreeji Realty.

The company initially forayed into the realty sector and later on ventured into the lucrative bullion business in 1997.

The group is run by Pankaj, his brother Kushik and their father Chimanlal Laljibhai Lodhiya.

Shortly after the news broke out from New Delhi, most of the important details were removed from the website, and a few telephone numbers elicited no responses at all.

However, Pankaj Lodhiya while reacting to some private television channels denied having any Swiss bank accounts, and claimed that he had disclosed everything to the Income Tax authorities. He said he was shocked to see his name coming in the government list and said he had no political connections.

Pankaj is the proprietor of Shreeji Trading Company, which deals in bullion. The Shreeji Group was initially into the real estate business in Gujarat and other states.

Shreeji Ornaments Pvt. Ltd. is engaged in manufacturing and trading of diamond and gold jewellery, silver articles and artefacts, and has branches in Ahmedabad, New Delhi, Jaipur, Raipur, Indore and Bengaluru with plans to expand operations in south India.

Shreeji Realty is into construction of residential buildings and the group cites its motto as ‘Trust, Purity and Honesty’ in business.