Sunday, October 27, 2013

D for Daamad ka Karobaar

Narendra Modi has rightly defined D in the English Alphabet as Daamad ka Karobaar.

For many it is a mere reference to the Land Scam that has been brought to light by controversial IAS Officer Dr. Ashok Khemka. For some, it is about understanding the Daamad ka Karobaar in detail. To understand his methodology while using influence of his wife, Priyanka Gandhi’s Family’s Political Influence, or using the money raised by the family through corruption, in his own business interests.

Everyone was almost always suspecting Robert Vadra of benefitting from Congress being in the power, there were multiple stories too, but there were no whistleblowers. For almost 8years or so, Indians hoped that someone with enough courage and honesty, with detailed knowledge of one of Vadra’s scams will surely come forward. It finally happened when Dr. Ashok Khemka, a controversial IAS Officer in Haryana who is now famous for over 40 transfers in nearly 20yrs career, cancelled the mutation entry in a land deal in Gurgaon.

There is no question that this act of Dr. Khemka has instantly catapulted him into stardom for anti-corruption crusaders of all political colors. Khemka’s stardom neither demands details of the case nor demands validity of action. The he blew the whistle itself is a courageous task worthy of praise.

But is it beneficial for us, from a perspective of conviction of the corrupt, to give prolonged attention to only Dr. Khemka instead of the merits of the case?

It is alarming to note prolonged celebration of Dr. Khemka. The entire Deal, which could be a Scam, has now become Dr. Khemka Centric, rather than Centering around Robert Vadra & Bhupinder Singh Hooda.

If the public wants to see the Scamsters getting convicted in the Court of Law, they must be clear that the work begins from the stage of direction of investigation. Incorrect line of investigation could lead to dead-ends and close the case before the investigative agencies can even file a case under relevant sections of Indian Law. Then we have to be careful about the relevant sections under which charges are framed against the scamster. Then hope that the Lawyers engaged present the case and argue about it in the correct manner. At any of these stages the case against a powerful scamster could be weakened and lead to the scamster going scott-free.

But instead of remaining focused, we find that public attention is diverted towards the on-going circus.

Now to the Case – Vadra & Hooda Aspect

We will not revisit the entire case as presented by Dr. Khemka because I have already done that in my two part article on this subject. Friends can read Part 1 - and Part 2 -

The key matter which has raised Dr. Khemka’s suspicion is the low purchase price and high sale price by Skylight Hospitality Pvt. Ltd. and there does seem something missing. But a closer look will tell you that while there does seem some mismatch in the pricing, it is possibly not in the sale price which happened 4yrs later in 2012, but in the purchase side, which happened in 2008.

Here’s what requires an investigation

1. What was the going open market price in Village Shikohpur of Gurgaon? Chances are, agencies may find that the going price in the open market in the area were between 5-10crs per acre.

2. If the land, as per 2008 open market price, cost Rs.17.5cr to Rs.35cr. for what reasons did Omkareshwar Properties decided to sell the property to Robert Vadra’s company for a mere Rs. 7.5cr? A gap of Rs.10cr to nearly Rs.27.5cr?

3. Did Omkareshwar Properties receive cash for the remainder of the amount?

4. What was the reason for so much comfort between Omkareshwar Properties and Robert Vadra, that Omkareshwar signed the Conveyance Deed (Sale Deed) without collecting its full amount from Vadra? And then also paying the Stamp Duty, even though the Land was sold for so cheap.

5. What is the nature of relationship between Satyanand Yajee, owner of Omkareshwar Properties & Haryana CM Bhupinder Singh Hooda? Similarly, what is the relationship of the Directors of the company – Sandeep Dahiya & Sushil Gupta – with Haryana CM Bhupinder Singh Hooda.

6. Did Haryana CM Bhupinder Singh Hooda have anything to do with the remarkable comfort shown by Omkareshwar Properties with Robert Vadra’s company?

7. What is the total extent of relationship that Haryana CM Bhupinder Singh Hooda have with Omkareshwar Properties

8. How did Omakreshwar Properties come to own this property? Who were the earlier owners? Was it Govt Land? Was it Panchayat Land? Was it a farm land owned by some farmer?

9. Can Omkareshwar Properties being Benaami Holding of Bhupinder Singh Hooda, be ruled out? Do Satyanand Yajee, Sandeep Dahiya & Sushil Gupta have the wherewithal to own & manage Omkareshwar Properties?

10. What was the source of funds for Omkareshwar Properties? How did they finance the purchase of this 3.53 acre land in Shikohpur?


It is these questions that we need to make part of our discourse. We must be very clear that if the public discourse can be directed well, the Opposition Leaders like Yashwant Sinha, who have demanded Judicial Investigation in the last Parliament Session, will be able to pose finer questions to the Govt. and therefore, if & when the Govt submits to public demand for Judicial Investigation into Robert Vadra Land Scam, we may find these finer points in the Terms of Reference. A thorough investigation of these points could bring out facts that will allow investigators to form correct charges under specific sections of Indian Law.

I request you to join this debate.

Robert Vadra Land Deal – Damad 420 - Part 2

In the Part 1, we tried to sketch the character of Robert Vadra, highlighted need to understand his modus operandi, listed facts of the case, listed players involved in the case and lastly, ran through the list of charges Dr. Khemka has made on Robert Vadra's Land Deal.

Now, in Part 2, we will try to analyze the validity of charges made by Dr. Khemka and also list out aspects that need a thorough Judicial Investigation.

Why these charges miss the mark?

Dr. Khemka is a learned man with years of experience behind him, so I will give reasons for why I think his charges miss the mark. We shall go point by point of Dr. Khemka’s charges as listed above.

1. Non-payment of Sale Consideration of Rs.7.5cr as mentioned in the deed & payment of Stamp Duty by Onkareshwar Properties, contrary to claim in the Deed – In all probabilities, the Sale Deed between Onkareshwar & Skylight refers to receipt of a Cheque dated 9th February 2008 in the sale deed. This is a usual practice. This has never amounted to “encashment” of such a cheque. Payment committed in a Sale Deed can be paid at a later date, if the Buying & Selling parties have considerably close relations or confidence & trust on each other. For e.g. during sale of Residential Units, the Sale Agreement is registered any time after the Developer obtains Work Commencement Certificate. Since the construction is not complete, the payment has not been made in full. The remainder of the payment is received at a future date.

Moreover, in this specific case, if Skylight Hospitality fails to meet its financial obligation as per the Sale Deed, it is for Onkareshwar Properties to complain & file a case for cancellation of the Sale Deed due to non-compliance of the financial obligation. The Land Revenue Department has no role in this case.

As far as the matter of payment of Stamp Duty is concerned, Dr. Khemka already agrees that Stamp Duty was paid. His limited contention here is that it was not paid by Skylight Hospitality as declared in the deed, but by Onkareshwar Property. That is a non-issue. Land Revenue Dept has not lost any revenue by way of Stamp Duty. It is a fairly common practice that when in a certain deal sale price is considered high, the buyer passes the responsibility & liability of payment of Stamp Duty & Registration to the Seller. In other cases, where the Buyer & Seller have considerable personal comfort with each other, Seller may agree to receive the Sale Consideration at a future date as well as pay the Stamp Duty and later have it reimbursed by the Buyer at a future date.

We anyway find that by Dr. Khemka’s own admission on Page 54 of his response, the Sale Consideration was paid back & the amount paid for Stamp Duty was reimbursed to Onkareshwar Properties by Skylight Hospitality, by August 2008, after execution of Collaboration Agreement.

2. Since no Sale Consideration was paid, Sale Deed doesn’t confer ownership of Land on Skylight Hospitality, this was basis of his cancellation of Mutation Entry – no Registrar of Assurances or Land Revenue Record provides Guaranteed Title on the Land. They only provide Presumptive Title on the Land. For e.g. in case of a Dispute, like in double sale, etc, it is the Court that determines which title is correct. There is no role for Land Revenue Dept. to take any Suo Motu action on such matters.

3. Inability of Robert Vadra to pay for the Deal in 2008 – This is a very subjective remark and is directly against the spirit of entrepreneurship. In almost any industry, people fill tenders, without having a real wherewithal to pay the capital required to complete the order. People raise money by way of equity & debt etc. This is the very spirit of entrepreneurship.

Even otherwise, if our primary contention is that Robert Vadra is without doubt a Corrupt man, then we must remember that Congress was in Power at the Center since 2004. Looking at the sizes of the scams, are we saying that Robert Vadra wouldn’t have managed to raise Rs. 7.95crore for a deal in February 2008, 4yrs after his Wife’s Family took control of the Govt at the Center?

His other methods like books of accounts etc are childish. Unsecured Loan could have come from anywhere else, including his other group companies or his own personal bank accounts.

There is little to gain by way of pursuing this argument.

4. All these are misrepresentation of facts in front of Sub-Registrar of Assurances, hence cancellation of Mutation Entry – Almost none of the matters above fall in the category of misrepresentation of facts in any serious way. Moreover, these issues are purely bilateral between Buyer & Seller. Mistakes, if any, are allowed to be corrected by way of a Rectification Deed.

5. Acceptance on page 54 of his response that after Collaboration Agreement with DLF Retail, Skylight Hospitality received Rs.25cr & from this Rs.7.95 cr (sale consideration & Stamp Duty reimbursement) was made to Onkareshwar Properties – What can Dr. Khemka, possibly, object to in this part of transaction? Original seller has finally received the money, Skylight Hospitality has finally borne the Stamp Duty by reimbursing Onkareshwar Properties. Skylight has generated financial backing by tying up with a strong real estate developer. Which part is illegal or criminal or even immoral here?

6. DLF used Skylight for CLU to account for Black Money as White Money in its Books of Account – A very silly charge. We are talking about Robert Vadra here. He is not even frisked at the Airports. Are we saying he needed to pay the Personnel at DTCP to get the Letter of Intent within 18 days? Does he logically & practically need to do that? Especially, when he has just purchased the land from a company owned & run by close associates & relatives of Bhupinder Singh Hooda, CM of Haryana? And if Vadra doesn’t need to pay DTCP Staff for LoI, where is the question of Black & White money?

Moreover, Dr. Khemka should realize DLF’s total Book size? The black money generated & managed at DLF must be a very large sum.

7. Collaboration Agreement of Skylight & DLF was not Registered causing loss of Stamp Duty & DTCP Officials connived by entertaining DLF Officials over CLU License – There are hundreds of such documents that private parties execute. These are interim documents executed before the final document. This fact is evident in clause 8(e) of Collaboration Agreement as reproduced on Page 60 of Dr. Khemka’s response. The Builder Buyer Agreement was agreed upon as the final guiding document for the venture and was to be executed after approval of Building plans. The Stamp Duty would be paid & relationship “sealed” at that stage.

And Dr. Khemka is missing the point that DTCP Staff may have been entertaining DLF Staff for CLU License on the basis of the Power of Attorney issued by Skylight Hospitality in favor of DLF Staff, Devinder Singh & not Collaboration Agreement. This point is amply clear from his own submission as noted in the next accusation.

8. Power of Attorney in Favor of DLF Staff Devinder Singh – If DLF Retail & Skylight Hospitality were ready to collaborate with DLF Retail as the Developer, and CLU License after LoI as its responsibility, the Land Owner has to give Power of Attorney to the Developer or its appointee. This is simply for the ease of operations in a seamless manner. In Mumbai, when a Society executes a Redevelopment Agreement, it also executes Power of Attorney in favor Developer for a wide range of items including dealing with Municipality & other concerned Govt Bodies. Society is the Land Owner here. There is no cause of concern here.

9. Questions issuance of CLU License to Skylight Hospitality in spite of Possession of Land with DLF Retail – While the legwork for permission is done by the Developer, we should remember it is doing so on the basis of Power of Attorney obtained from Land Owner. PoA for specific task doesn’t mean change of Land Ownership. The Official communication is always addressed to the Owner. This is due process.

10. Equating Collaboration Agreement as Sale Deed – Dr. Khemka contradicts his own sequence of events. Not only that, he is ascribing a completely unrelated scope to a document that he has himself reproduced in fair detail in his response. Collaboration Agreement clearly mentions 50% stake to DLF & Skylight each. The deal seems valued at Rs.40cr and therefore, Rs.20cr is paid to Skylight Hospitality. Rs.5cr is only paid as a Refundable, non-Interest Bearing Security Deposit, which is to be refunded once 50% Built-up area committed to Skylight Hospitality is handed over. Refundable Deposits are always non-interest bearing. We don’t need to go far. When people take a house on rent, they pay Security Deposit to their Landlord. Do they charge interest for this Security Deposit? No. Its similar.

11. DLF has considerable clout in DTCP to obtain CLU License or get renewal – What is unsual about this? The size of business operation that DLF has in Haryana & the amount of time they have been running these business operations (since 1963 at least), their staff & owners must have been dealing with DTCP staff for years, would have considerable organizational experience in obtaining CLU Licenses. And why should it not have such an expertise or relationship (clout) with DTCP staff with whom they must be dealing on a daily basis? It is quite in line with Managerial Abilities, even shareholders expect from DLF & its staff. Why should we be alarmed about such a point?

12. Questions “permission” to transfer Commercial Use of Land to DLF Universal – Dr. Khemka should realize that the Land Use permission is on the Land not the Land Owner. DTCP has to communicate to someone, and that someone is Land Owner. It is only for this reason that it is addressed to Land Owner. Nor is CLU issued on the basis of Land Owner’s ability to execute a project as per CLU obtained. We are not dealing here with a Master Planner concept, like we have in, let us say, Dubai, where Emaar as a very large land owner cuts plots & sells to prospective Buyer, with certain conditions on nature of development of land & the timelines within which a Developer may complete a project.

To illustrate this more clearly, if a Land has Residential Use on it, if it was to the Owner alone, will it be transferred to any other land the Owner would come to use? Or if the Owner sells the land to someone else, does the new owner have to obtain new permission? No.

Another example, in case of CRZ (Coastal Regulation Zone) reservations, it doesn’t change with the change in ownership.

These are very basic & fundamental issues within real estate. I don’t know why this has even become an issue worth dwelling on for Dr. Khemka.

13. Sale Deed between Skylight Hospitality & DLF Universal Ltd. doesn’t detail Collaboration Agreement between Skylight Hospitality & DLF Retail Developers Ltd. – Why was this required? DLF Retail is essentially a separate entity from DLF Universal. In the recitals, it is the parties’ choice to decide how much details they provide. As long as Stamp Duty in DLF Universal- Skylight Hospitality deed was paid properly, why should Dr. Khemka have any objections?

14. Benefits to Onkareshwar Properties due to deal with Robert Vadra’s company – Complete conjecture. Especially when you look at relationship of those who own & run Onkareshwar Properties. They are Associates & Relatives of Bhupinder Singh Hooda, CM of Haryana. The Group Housing License issued by DTCP is not something that any other Developer cannot obtain, least of all someone who is personally well-known to CM of the State. Dr. Khemka is making too much out of obtaining CLU Licenses.

Then what should we focus on in this Deal that has been brought to light by Dr. Khemka?

Dr. Ashok Khemka has done a courageous job by pointing out to this issue. He may not be hitting the nail in his accusations, but with limited details available, alternative starting points & key areas of concern can be pointed out by various people.

Here is a list of what I think are key areas of concern for us:

1.   When & how did Onkareshwar Properties Pvt Ltd come to own this parcel of Land? What is the evolution of title? The owners & Directors of the company are close to CM of Haryana, Bhupinder Singh Hooda. Did the land belong previously to Panchayat, Govt, private Farmer? Was it purchased through coercion? What was the Sale Consideration when Onkareshwar Properties purchased the property? What was the source of their funds?

2.   If the owners & Directors of Onkareshwar Properties Pvt Ltd are such close associates & relatives of CM of Haryana, Bhupinder Singh Hooda, and have shown considerable comfort & trust with Robert Vadra, is there any role played by Bhupinder Singh Hooda? Is there a chance of Onkareshwar Properties being a Benaami Company of Bhupinder Singh Hooda? Is Onkareshwar Properties running its operations from funds that may have been generated from corruption in Haryana?

3.   As per my personal knowledge, the open market price of Land in Shikohpur in 2008, where the land under discussion was situated, was quoted anywhere between Rs.5cr/acre & Rs.10cr/acre, depending on various influencing aspects. So, ideally, this land of 3.53 acres should have been valued at anywhere between Rs.17.5cr to Rs. 35cr. Why did Onkareshwar sell it so cheap at Rs.7.5cr then? Was there any kind of coercion involved?

4.   Or, was there some cash transaction in this deal? Or was there any transfer of funds to any foreign accounts using foreign bank accounts of the Buyer & Seller? The matter must be referred to Income Tax Dept & Enforcement Directorate. This could be a valid area of concern.

5.   There is no great value added by Commercial Use of Land License. DLF by itself is fully capable of obtaining such permission. Robert Vadra added nothing new or rare value to this land with this permission. The only thing that stands out here is that LoI for CLU was obtained within 18 days of Application. It usually takes 5-6 months for an average applicant. Robert Vadra with his relationships & resulting influence only hastened this LoI. Land was also finally sold in September 2012. 4.5years after its purchase. I am not unduly worried about appreciation in sale price. DLF is not an organization that could come under pressure or be coerced to pay unduly high price.

Need for Judicial Investigation

The only logical way this matter can be understood in detail is through a Judicial Investigations. Such white collared scams are very intelligently executed and require every possible detail to understand Modus Operandi and with the knowledge of that Frame correct charges & ensure those guilty are punished.

This is as far as I could decipher from the available details in the response document by Dr. Ashok Khemka. This is a collaborative effort. If someone else has knowledge of additional angles, it will be good if they can shed light.

This blogpost was written for Niti Central originally. It can be accessed here -

Robert Vadra Land Deal – Damad 420 - Part 1

Robert Vadra needs no introduction to Indian Public. Everybody knows he is husband of Priyanka (Gandhi) Vadra or as they call her out of “love” - Bhaiyaji, Brother-in-Law of, always disappointing, Rahul Gandhi & Son-in-Law of, always invisible, Sonia Gandhi.

The Aura around Robert Vadra

He is the only person who is illegally extended the privilege of “No Frisking” at Airports and enjoys these privileges with a sense of Divine Right. It is, therefore, only fair to evaluate Robert Vadra as a person who will have no moral fear or shame in partaking of any spoils that accrue to him legally or illegally, morally or immorally, due to the power & influences wielded by his Wife’s Family.

The Nehru Gandhi family has been in power for over 9yrs at the Centre and while UPA1 Government enjoyed a period of some urgent & massive loot, UPA2 Government faced a period of unbelievable exposures of the Corruption carried out during UPA1 Government. The scams, unearthed till date, amount to Rs.20 Lakh Crore. How many more are yet to come to light is anybody’s guess, as there is not one Ministry that remains untouched by this widespread & deep corruption. As my friend M R Venkatesh announced during the Mumbai launch of his book a “Dr. Manmohan Singh – A Decade of Decay”, this Govt. has the rare distinction of committing the “Pancha-Bhoot Scam”. The scams touch all five elements of life. Prithvi (Mining scams like Coal & Thorium, countless Landscams), Agni, Jal, Vayu (2G Scam), Aakash (S-Band Scam). Or as Narendra Modi said, the Congress-led UPA has a done a scam starting with every single English Alphabet, where D stands for Daamad ka Karobaar.

Perception’s Decisive edge over Proof of Corruption

Primarily because there has been an over Rs. 20 Lakh Crore of loot (excluding Rs.60 Lakh Crore Thorium Scam.) under the authority of Robert Vadra’s wife’s family, and also because Vadra himself doesn’t shy away from enjoying the spoils that accrue, the people of this Country are convinced that Robert Vadra & the sharp rise in his fortunes are clearly the results of this loot. Most thinking people don’t even entertain a faintest thought about innocence of Vadra. He is Corrupt, his rise is illegitimate & this matter is concluded.

What, however, the country needs to learn is how does Robert Vadra operate?

We have to remember that Robert Vadra has at his disposal the best advice to execute his nefarious activities by enjoying every loophole within the system, looking absolutely normal on the face of it, enjoying a blind eye if, god forbid, something comes up by chance & having a ready Army of Paid Media to divert attention & obscure issues in case of a rare exposure.

We created a system for obtaining India’s brightest minds for the Service of the Nation through IAS, IFS, IPS etc and now these bright minds provide service to their political masters as the institutions they were hired to run have already died a thousand deaths.

This is White-Collar scam. They are not crude. They don’t look like scams on the face of it. Even your strongest suspicions will find it difficult to arrive at their Modus Operandi. This is a learning curve for the nation & anti-corruption forces of the nation, and none is much brighter than the other. Each one of us has to bring out our understanding of a small part of these scams and complete this complex picture.

Please remember, information is always incomplete in such scams and comes slowly. One just maintains a dynamic approach to analysis of such scams. There are no final conclusions but a range of interim conclusions, based on the amount of information available till then.

Corruption & the Corrupt in this 21st Century can be curbed & apprehended, respectively, only through such a wide scale participation for the understanding of the Modus Operandi.

First Case with some Proofs

While the rumors of Vadra’s stake in Helicopter charter business, Kolkata Knight Riders (IPL Team), DLF’s Emporio Mall in Delhi, Unitech’s 2G Venture, Benaami stake in BPTP Lands etc have constantly done rounds, there has been little to offer by way of proof.

However, over the last few months, actions of one IAS Officer, Dr. Ashok Khemka, have brought at least one Robert Vadra deal to public’s notice. There is something by way of documentary proof, sequence of events & hints of Corruption, Crony Capitalism, Benaami Transactions, submission by Govt Offices to the Influence & Power of Robert Vadra.

This is the story of a Land Deal which moved from Onkareshwar Properties Pvt Ltd. to Skylight Hospitality Pvt Ltd. in 2008 & then from Skylight Hospitaity Pvt Ltd to DLF Universal Ltd. in 2012.

The Facts of the Case

The facts presented here are part of Dr. Ashok Khemka’s Reply to the Three-member committee enquiry into the cancellation of Mutation Entry of Onkareshwar Properties-Skylight Hospitality Deal & therefore, Skylight Hospitality-DLF Universal Deal.

The flow of Events

1. Property Description – 5 Bighas & 13 Biswas (3.53 acres approx.) at Khasra No. 730, Village Shikohpur, Sector-83, District Gurgaon.

2. Till 12th Februrary 2008, the property belonged to Onkareshwar Properties Pvt Ltd.

3. On 12th Februrary 2008, the property was transferred by Onkareshwar Properties Pvt. Ltd. to Skylight Hospitality Pvt Ltd. for a total consideration of Rs.7.5cr.

4. On 28th March 2008, “only” a Letter of Intent (LoI) for grant of Commercial License was issued by DTCP for 2.701 acres of Land out of a total of 3.53 acres

5. On 5th August 2008, Skylight Hospitality Pvt. Ltd. entered into a Collaboration (nature of instrument, like Development Agreement, Joint-Venture, AoP or just an MoU etc is not mentioned, however, it is mentioned that it was an unregistered Document executed on a non-judicial paper worth Rs.100/- only) with DLF Retail Developers Ltd. for development of the property on a Commercial Basis.
Pls note: Only a Collaboration has taken place & there is no sale of land yet to DLF by Skylight Hospitality Pvt Ltd.

6. On 15th December 2008, possibly upon payment of Development & Other charges, as may have been mentioned in the LoI dated 28th March 2008, License for Commercial Use of Land is issued. The same is valid for a period of two years, i.e. upto 14th December 2010.

7. After lapse of Commercial License on 14th December 2010, on 18th January 2011, license is extended by additional 2yrs, i.e. upto 14th December 2012.

8. On 3rd April 2012, DTCP grants “only” the permission to transfer the Commercial License in favor of DLF Universal Ltd.
Note: This must be, in all probabilities, an advise/consultation from the DTCP that change of land title will not affect the Change of Land User to Commercial Purpose. Also, that after transfer of Land Title, DTCP must communicate with DLF Universal Ltd & not Skylight Hospitality Pvt. Ltd.

9. On 18th September 2012, the Land is “purchased” by DLF Universal Ltd. (possibly, as Ashok Khemka’s report doesn’t detail & permission for transfer of License is issued to DLF Universal Ltd.) from Skylight Hospitality Pvt. Ltd. for a consideration of Rs.58cr., after holding the property for over 4.5yrs.

Parties Involved

1. Onkareshwar Properties Pvt. Ltd. – A company incorporated in Sept 2004. Then owned by Satyanand Yajee (98% shares).

2. Satyanand Yajee – An Old & close associate of Mr. Bhupinder Singh Hooda, Chief Minister, Haryana. He was reportedly the person-in-charge for building a memorial for CM Hooda’s father, Chaudhary Ranbir Singh in Rohtak.

3. There are reportedly two other Directors – Mr. Sandeep Dahiya & Mr. Sushil Gupta.
Note: I am saying this on the basis of an NDTV Report by Sreenivasan Jain on this matter, published on August 17, 2013. The link can be checked -

4. Mr. Sandeep Dahiya – A nephew of Mr. Bhupinder Singh Hooda from his wife’s side.

5. Mr. Sushil Gupta – Reports allege him to be a close associate of Mr Hooda, from Rohtak. But nothing else seems to be known.

6. Skylight Hospitality Pvt Ltd. – A Company incorporated in Nov 2007. Owned by Robert Vadra (99.8% shares)

7. Robert Vadra – Husband of Priyanka Gandhi. Son-in-Law of Sonia Gandhi.

8. DLF Retail Developers Ltd. – A wholly-owned subsidiary of DLF Ltd., run by daughter of Mr. K P Singh – Pia Singh. The company is primarily into Development of Retail Space & is the owner of DLF Emporio, the high-end Mall in Delhi, amongst others.

9. DLF Universal Ltd – Possibly same as DLF Ltd, as the name was changed in May 2006.

Dr. Ashok Khemka’s Accusations

1. The sale consideration of Rs.7.5cr mentioned in Sale Deed between Onkareshwar Properties Pvt. Ltd. & Skylight Hospitality Pvt. Ltd. was never paid out and the Stamp Duty of Rs.45 Lakh was paid by the Onkareshwar & not Skylight. This is contrary to the submissions in the Sale Deed between the two parties. Both the facts are construed as misrepresentation of the facts in front of Joint Sub-Registrar of Assurances.

2. Dr. Khemka points outs that since no payment was made, the Sale Deed didn’t confer ownership title over the land, under discussion. He calls the Sale Deed a Sham-Deed, and has, on this basis cancelled the Mutation Entry in the Land Revenue Records of Gurgaon.

3. Then Dr. Khemka dwells on the possibility of “inability” of Robert Vadra to pay Rs.7.5cr of Sale Consideration & Rs.45 Lakhs of Stamp Duty through his company Skylight Hospitality. He points to various media reports carrying statements of CMD of Corporation Bank, his own analysis of the Audit Report of Skylight Hospitality etc. He then extends this argument to Skylight’s capacity to even carry out Commercial Development, on the said land.

4. Then he construes all of this as misrepresentation of facts. And adds it up as a reason for his cancellation of the Mutation Entry into the Land Revenue Records of Gurgaon.

5. Then on Page 54 of his Response to the Three Member Committee Inquiry Report into this case, Dr. Khemka goes on to accept, on the basis of details in Collaboration Agreement between Skylight & DLF Retail as well as Skylight’s Balance Sheet that the Payment was finally made around August 2008 after Skylight received Rs.25crore from DLF Retail, on execution of Collaboration Agreement.

6. He also accuses DLF of obtaining Letter of Intent as well as License for Commercial Use of Land through Skylight Hospitality only to get the Unofficial Premium (corruption money to get LoI, black money) accounted for since on books of DLF Retail, the payment to Skylight Hospitality is made through Bank Transaction (white money).

7. Dr. Khemka also argues that since the Collaboration Agreement was not registered, it cost loss of revenue to Land Revenue Dept by way of Stamp Duty. He accuses the personnel of the Dept to have played into the hands of such parties as they entertained communications from DLF Retail, on behalf of Skylight Hospitality.

8. Little later, Dr. Khemka reveals that there was a Power of Attorney issued by Skylight Hospitality in the name of Devinder Singh, who was primarily a DLF Personnel.

9. Then, Dr. Khemka questions the issuance of License of Commercial Use to Skylight Hospitality because the possession of the Land has already been given to DLF Retail.

10. Dr. Khemka also construes Collaboration Agreement as Sale Deed. This is inspite of clear mention in the Collaboration Agreement that DLF Retail & Skylight Hospitality will each have a 50% stake. And for DLF’s 50% stake Rs.20 crore was paid as an Advance & Rs.5cr was paid as interest-free, refundable deposit against Skylight Hospitality’s 50% Built-up area, to be refunded back to DLF Retail upon handover of the Built-up area.

11. On Page 69 of his response, Dr. Khemka, accuses DLF of having considerable clout within DTCP for getting renewal of Commercial Land Use License, as even now there is no work going on at the site & current License may lapse.

12. Dr. Khemka, thereafter, questions the permission to transfer of Commercial Land Use License from Skylight Hospitality. He likens it to Driving License and says it is given on the basis of ability of the Land Owner to carry out the Development.

13. On the 18th September 2012 Sale Deed between DLF Universal & Skylight Hospitality, Dr. Khemka says, the details of the Collaboration Agreement are not mentioned and this too is misrepresentation of facts in front of Joint Sub-registrar of Assurances.

14. Going back to Onkareshwar Properties, Dr. Khemka says, selling the 3.53 acre Land to Robert Vadra, through his company Skylight Hospitality, gave benefits to Onkareshwar Properties by way of issuance of Group Housing Licenses from DTCP on two other properties of this company in Sihi Village, Sector-82, District Gurgaon. One, was a 6.262 acre land, the other was a 15.068 acre land.

The above is the summary of the charges made by Dr. Khemka, in his response. Most of these charges, unfortunately, don’t hit the nail. There is clearly something wrong with the deals here. A company owned/run by Mr. Hooda’s associates & relatives is dealing with Robert Vadra’s company.

This Blogpost was written for Niti Central originally. It can be accessed here -