Amit Shah’s Son’s Company Gets 300% Jump In Credit Facilities In One Year Even After Running In Losses; Shah Omits Liability In Electoral Affidavit That Helped Son’s Firm Secure Credit Facilities
Failure to disclose all assets and liabilities in electoral affidavit may result in immediate rejection of the nomination.
Bharatiya Janata Party (BJP) president Amit Shah mortgaged two of his properties for his son Jay Shah’s company Kusum Finserve LLP and conveniently left out to list these liabilities in the electoral affidavit, reported The Caravan.
According to the Representation of People’s Act, a candidate must fully disclose all his assets and liabilities in the electoral affidavit. The failure to do so may result in immediate rejection of the nomination.
SY Quraishi, former chief election commissioner of India, told The Caravan, “An electoral affidavit of a legislator should contain the whole truth and nothing but the truth. If there is prima facie a case of irregularity, then action should be taken against the legislator. The real question here is how harsh should be the punishment that is to be meted out to such politicians.”
Another former election commissioner said, “For filing an affidavit with false information, the legislator should be disqualified and action can be taken against him separately under the existing law of the country.”
“Anyone who files a false affidavit is liable to be disqualified and unseated. He is also liable to face criminal prosecution under the relevant sections of the Indian Penal Code. A common citizen can write to the EC to initiate a complaint against the legislator,” said Jagdeep Chhokar, a founding member of the Association for Democratic Reforms, an NGO active in the field of electoral reforms.
Another interest thing to note is that the credit facilities received by Kusum Finserve over the past 12 months has increased by almost 300 per cent, even after its poor financial performance.
According to The Carvan report, since 2016, Kusum Finserve has secured credit facilities amounting to Rs 97.35 crore even though the company’s net worth is only Rs. 5.83 crore.
As per Kusum Finserve financial documents that are publicly available, the firm has been running with a negative working capital since 2012. This means that Shah’s firm has incurred losses almost every year since 2012.