BJP poured money from party funds to financially help a newspaper. Is something fishy?

The Bharatiya Janata Party (BJP) opened its party funds for Shree Multimedia Vision Ltd (SMVL). The BJP gave money from its party funds to ‘for profit’ firm SMVL to publish newspaper.

Also, few prominent BJP leaders were either directors or stakeholders in the company, including Maharashtra education minister, Vinod Tawde.

As per a report published by Economic Times, after becoming the education minister, Tawde appointed the newspaper's editor, Dilip Karambelkar, as head of a state education body.

The SMVL directors also have connections with the BJP as either donors or party members.

The BJP gave Rs 25 lakh in 2001, which turned out be a no return on the investment case.

Although the newspaper, Mumbai Tarun Bharat, continues to be published from the 'BJP Karyalaya' in Chembur, Mumbai, the address of the newspaper under the Registrar of Newspapers for India is identical to that of SMVL as given in Registrar of Companies (RoC) records.

ET reported that in 2008, the title was transferred back to Bharatiya Vichar Darshan Trust, which had sold the title to SMVL.

In its 2012-13 balance sheet filed with RoC - the latest available in RoC's database - SMVL shows "nil" business activity but declares a "short term borrowing" of Rs 25 lakh from BJP Maharashtra. BJP described the amount as a "trade advance" and not a loan.

Meanwhile, in 2013, an independent auditor's report stated, "For want of detailed information, we are not in position to comment whether the company has either granted or taken any loans secured or unsecured to/from companies, firms or other parties covered in Register maintained under section 301 of The Company Act 1956."

BJP's Arun Singh said in a written response to ET: "The amount was given as an advance for normal transaction. Accordingly, the amount was shown as a trade advance given by the Maharashtra unit of Bharatiya Janata Party in its audited balance sheet which in turn is merged with the overall accounts of the party."

It is noteworthy that the list of company’s directors include Roads Minister Nitin Gadkari, who resigned in April 2011, but remains a nominal shareholder in the company.

So where is the network, Ravindra Boratkar, a director in SMVL, is the chairman of Purti Group, of which Gadkari is the promoter.

C Uday Bhaskar Nair, another director in SMVL, runs a coal-trading outfit besides two big hospitals in Nagpur. He is recorded as a donor to BJP in 2008. In 2011, he contested assembly elections in Palakkad, Kerala, on a BJP ticket. He is also the largest shareholder in SMVL.
Likewise, there are many cases.

(Image: Indiatimes)