CAG report being misinterpreted, says Gadkari

NEW DELHI, May 11:  Facing attack over a CAG report, Union Minister Nitin Gadkari today broke his silence in Parliament, saying there was no corruption or misappropriation charge against him and the Government auditor’s report was “deliberately being misinterpreted for political reasons.”
Gadkari, whose dismissal is being demanded by opposition after CAG report alleged irregularities in loan extended to his family-linked Purti Group, said in Rajya Sabha that the auditor has nowhere named him as a wrong-doer.
But the Congress members were not satisfied with his statement and continued to shout slogans even as Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi asserted that Gadkari will not resign. The House saw five adjournments till noon over the issue.
Amid slogan-shouting by Congress, Gadkari read out a statement saying the CAG report was “deliberately being misinterpreted for political reasons”.
“My respectful submission before this august House is that let us follow the established procedure in the matter of CAG reports and if any wrong-doing is established by the PAC, which will be discussing the CAG report in due course of time, the law should take its own course,” he said.
“The CAG has nowhere named me as a wrong-doer nor there is any adverse comment against me. There is neither any indictment nor any charge of corruption or misappropriation against me of the PSKL (Purti Sakhar Karkhana Ltd),” the Road Transport and Highways Minister said.
He said the principal loan amount of Rs 46.63 crore was provided by state-run Indian Renewable Energy Development Agency to Purti Group for a 22-MW bagasse-based power plant in Nagpur and major part of the interest has been repaid.
Noting that he was Chairman of PSKL from 2000 to 2011, he said he was neither an MP nor held any public office in Government when the 13-year loan was extended to the firm in 2008-09.
“The Audit report alleges lapses/irregularities in procedures followed by IREDA, which were explained in detail by IREDA and comments of the CAG are not acceptable to IREDA,” he said.
“PSKL has not committed any misappropriation nor has it misrepresented any facts before IREDA. The audit report does not allege any such conduct,” he claimed.
Leader of Opposition Ghulam Nabi Azad said Gadkari, in
his statement, has not talked about himself and Congress is not at all happy wit his reply. “He(Gadkari) will have to resign,” Azad said.
The Congress leader noted that the loan was granted to the company from IREDA on the condition that 75 percent of the energy had to be generated from renewable sources while they were allowed to raise only up to 25 percent from other sources like hydro and thermal.
The company, however, chose to generate 100 percent energy from coal itself, Azad alleged, adding “this is a big cheating and separate cases can be lodged for this.”
He wondered “how can you change it, when you get loan for a particular project. The wrong was done in the very beginning. Then the project was declared an NPA. How can you take loan after that..After declaring it an NPA? Our party does not accept it.
“On the same issue, he was removed as President of his party earlier even as he wanted to continue in the post till the last moment. Our party is not at all satisfied with his reply. He will have to resign.”
Naqvi, however, said the Opposition earlier made allegations against Gadkari and when the minister came in the House to reply, they were not ready to listen to him.
“Now you demand his resignation. He is not going to resign to oblige you. We are running the Government. We have got the mandate. There is no corruption charge against Gadkari. IREDA and not he had to answer on this. It is his greatness that he came to give a reply.
“This entire episode is baseless and irresponsible. Gadkari’s reply has proved that all this (Opposition’s allegation) was wrong,” Naqvi said.
Sitaram Yechury (CPI-M) said that irrespective of whichever Government has been in power, his party has always been seeking a thorough investigation of cases of corruption and punishment for the guilty.
“Until then, the concerned person should not occupy the office so that he does not influence the probe,” he said.
PSKL, Gadkari said earlier, has settled the loan amount by repaying the full principle and major part of the interest, amounting to 84.81 per cent of the total outstanding and was “far better placed than other companies which settled their loan with IREDA under the one-time-settlement scheme.”
He claimed that PSKL complied with all requirements as per established guidelines and procedures defined by IREDA. “PSKL has always followed rules and procedures governing the business in letter and spirit and has never indulged in any unlawful practices,” the minister added.
The Public Accounts Committee (PAC) will now scrutinise the CAG report that has alleged irregularities in Rs 48.65 crore loan given by IREDA to the Nagpur-based company, whose promoters and directors including Nitin Gadkari had given “personal guarantee”.
Congress members, however, repeatedly created ruckus and trooped into the well shouting slogans that Gadkari should be “ashamed” and “resign”.
Members from the treasury benches shouted back “Chor Machaye Shor”.
Earlier when the House met for the day, Anand Sharma (Cong) said he has given a notice under rule 267 seeking suspension of business to take up the CAG report.
Alleging a scam, he said the loan was given to Purti Group for constructing a power plant based on bagasse but the feedstock was midway changed, without intimation, to coal.
“This is cheating,” he said, adding that in the past the Government of the day had been put in dock and ministers resignation demanded over leaked CAG report.
He said an impartial inquiry is not possible till Gadkari remains a minister. “Prime Minister has repeatedly said he has zero tolerance for corruption. We now want to see his zero tolerance (in Gadkari’s case),” Sharma said.
Sharma said there should be a proper probe into the issue and wondered “whether the benchmark has changed” on corruption issue after the BJP came to power.
Kurien tried to take up Zero Hour but Congress members did not allow it prompting the Chair to remark that he was really “sorry” that he was not being able to allow the members to take up Zero Hour while each subject is important.
“The Chair is helpless,” he said. The House was adjourned thrice during Zero Hour. (PTI)