Author: BS Reporter
Publication: Business Standard
Date: October 28, 2012
URL: http://www.business-standard.com/india/news/swamy-alleges-rahul-gandhis-firm-misappropriated-funds/490905/

Demanding an impartial probe into Bharatiya Janata Party (BJP) president Nitin Gadkari’s financial dealings, Janata Party President Subramanian Swamy on Saturday alleged Congress leader Rahul Gandhi’s firm had also misappropriated funds.

Swamy, who was on visit to Gujarat to declare support to Narendra Modi-led BJP in Gujarat elections this year, said while Rahul Gandhi had set up a firm, Backops Services Pvt Ltd, on May 27 2002 “with the objective of providing back office and advisory support services to clients”, it filed its accounts with the Registrar of Companies (RoC) only in March 2007.

“This is sheer violation of the Companies Act. Till 2009, the company was accepting money from abroad without any permission from the Reserve Bank of India — which is another violation. In 2005, the company stated it had received Rs 41 lakh in foreign exchange,” said Swamy.

Swamy said Backops Services had also appointed a US citizen as director, but never informed the RoC. “Since 2006, the company’s annual general meetings (AGMs) were held at Priyanka Vadra’s residence at 35, Lodhi Estate, which is also violative of the rule for government house allotment. On May 24, 2010, the company had informed the RoC that Rahul Gandhi had resigned from the directorship a year back, in May 24, 2009. It took Gandhi’s company 14 months to inform the RoC that Priyanka Vadra had been appointed as a director the same day that Rahul Gandhi resigned,” alleged Swamy.

In his support to Modi, Swamy said BJP would win at least 140 of the 182 assembly seats, though the party should aim to win all the seats. “BJP should try and win all the seats to teach the Congress a lesson,” he said. Swamy said despite a Union Cabinet reshuffle, Congress would not be able to erase the taint of corruption.