Despite 80cr turnover, Jay lost 1.5cr: Amit Shah defends son
What's the story
BJP President Amit Shah has come to son Jay's defence after The Wire had alleged that the firm, Temple Enterprises Pvt. Ltd., owned by Jay Shah had increased its revenue 16,000 times after PM Narendra Modi came to power. Shah said there is no question of corruption as his son's firm was not involved in "even one rupee worth of business with the government".
Allegations
What had The Wire alleged?
The Wire alleged that after incurring losses in 2013 and 2014, Jay's enterprise earned a Rs. 18,728 profit on Rs. 50000 revenue in 2014-15. Subsequently, in 2015-16, it registered a Rs. 80.5cr turnover, i.e., a 16 lakh percent growth. In October'16, it went bust. Moreover, for a windmill in Ratlam, MP, Jay's another firm received a Rs. 25cr loan from Kalupur Commercial Cooperative Bank.
Business model
Shah explains Jay's business model
Shah said that Jay's business of commodity trade is a "high-value, low-profit venture" so "if the company's turnover becomes Rs. 1cr, its profit does not become Rs. 1cr." Thus, though Jay's company achieved a turnover of Rs. 80cr, his company suffered a loss of Rs. 1.5cr. He didn't achieve any profit. Moreover, as all were cheque payments, there is no question of money laundering.
Quote
Shah also elucidates the details of the bank loan
About the cooperative bank loan given to the company, Shah said "it was not a loan, but a letter of credit." Credit was given "to lift material against cash deposits. Jay's cash was lying in the bank, and we have paid the loan with interest."
Defamation suit
Shah defends Jay's defamation suit
Shah defended the Rs. 100cr criminal defamation suit filed by Jay against The Wire for allegedly insinuating that he was involved in corruption through an article that was 'scandalous, misleading, derogatory, libelous and had many defamatory statements'. Shah said through the suit, his son voluntarily sought an inquiry into this and if anyone had documents to prove allegations, they "bring them to court."
Do you know?
Shah also took this opportunity to slam Congress' corruption cases
Shah said in Jay's case no "commission" was taken like Bofors. He asked Congress that "Congress has faced so many allegations of corruption" but why has it never filed a defamation suit? He questioned 'did it not have the courage to file such a suit?'
Congress
Opposition tears into Shah over allegations
Congress earlier demanded Shah's resignation to ensure that an independent probe into Jay's business is conducted. Congress also held press conferences in 12 state capitals to highlight the controversy over Jay's business. Congress spokesperson Anand Sharma asked that Jay's entire business model be made public about how all money came into the business and whether the RBI guidelines were followed while giving some clearances.
BJP
Even BJP, RSS leaders demanded an enquiry
BJP leader Shatrughan Sinha called for an inquiry of whether Jay benefited from crony capitalism. He said "When there are such serious allegations, why try to suppress them? The truth must prevail." Veteran Yashwant Sinha said BJP had "has lost the moral high ground" by not ordering an inquiry. RSS said if prima facie evidence exists, then inquiry should be conducted.