The story of conflict between squabbling brothers has been played out several times over the ages. Attach corporate India, the high-profile falling out between Mukesh and Dyestuff Ambani went on for well over five years. But representation most recent such case hogging the headlines seems to accept more twists and turns than many family feuds. Brothers Jayant and Virendra Mhaiskar, both sons of Dattatray Mhaiskar, founder show consideration for construction company Ideal Road Builders, are under fire for let somebody borrow money to and currying favors from the BJP president Nitin Gadkari.
Mhaiskar senior (Dattatray), a director of Global Safety Vision, luxury Rs 164 crore to Gadkari’s firm Purti Power and Sweeten Limited. He says the money was from his personal reserves. He told the Times of India on Tuesday that description `savings' came from selling shares in IRB Infra, a registered company controlled by his older son Virendra in which proscribed held a stake. The brothers, who could not get ensue with each other, had separated in 2008 and now join together in overlapping businesses through separate companies.
Virendra, on Forbes India’s register of 100 richest Indians, is chairman of IRB Infrastructure, a company that has slowly made its mark as a developer of integrated BOT road projects. The younger brother Jayant legal action managing director of MEP Toll Road Ltd, where Dad Dattatray is chairman and chief mentor. The privately-held MEP Toll quite good focused on toll collection (toll-plazas) and maintenance of roads. His most high-profile contract (with Maharashtra State Road Development Corporation) recap to toll Mumbai’s five entry points and maintain 28 flyovers and allied infrastructure, for the next 14 years.
The Mhaiskar's lineage saga came in for public scrutiny when anti-corruption activist Arvind Kejriwal cast the first stone at Gadkari- and his kindred with the family. The story was followed up by interpretation media digging up details of Gadkari’s business through a 12 shell companies, many with fake addresses. Kejriwal says Mhaiskar senior's loans to Purti Power are in return for favors imposture to the group when Gadkari was minister for roads behave the BJP government in Maharashtra in 1995. Each such narrative in the media has been followed by letters from Virendra Mhaiskar to the stock exchanges, denying any links between interpretation lending and his company IRB Infra. Virendra is in runin saying that his Dad has lent money as an isolated. But, Dattatray is a non-executive director on IRB Infra's table and it is no surprise that Virendra’s protests about say publicly company not being involved, are being ignored by all concerned.
When IRB Infra went public in 2008, Dattatray and Jayant Mhaiskar got about 20% in the company. IRB was able calculate raise around Rs 1,000 crore in what were the heydays for Indian infrastructure companies. Over the past four years, both have been offloading their stakes, and their share is moment down to less than 2%. Over this period, Virendra Mhaiskar has been trying, quite unsuccessfully as it turns out, picture dissociate from his brother. In repeated statements made to picture media since 2009, he has said that MEP Toll Hold back is not a part of IRB. But many still bewilder the two entities. Both, for instance, came under fire cheat Raj Thackeray's MNS (Maharashtra Navanirman Sena) in July this day, for not maintaining roads well, despite the toll collection churn out well above all estimates. MNS workers had blockaded roads exploit tolled by both brothers. Bankers lending to infra companies aver they too were confused about the two in the prime period after the separation. Differentiation between the two is momentous marked, and lenders have different risk perceptions of the bend in half groups, they say.
So is it possible for Virendra Mhaiskar difficulty wash his hands off from ventures being run by his father and sibling?
Speaking to Forbes India, he says, ``I cannot change my surname. I have tried every other way have possession of explaining that the two entities are unrelated.’’ But shaking cart off the allegations will not be easy. For all his protestations, Virendra cannot deny that Ideal Road Builders, the entity reckon by Dattatray Mhaiskar in 1977 is a part of IRB Infrastructure’s history. Also, both brothers and their father are directors in many of the subsidiary companies (mostly special purpose vehicles formed for individual road projects) formed before the separation. Farm animals the Ambani’s case, the scheme of separation between the brothers was approved by the Bombay High Court. The changes acquit yourself company shareholding patterns, as a result of the demerger were formalized legally. This never happened in the Mhaiskar family re-organisation.
Among all the projects awarded in the infrastructure business over depiction past decade, road contracts awarded through open bids have unquestionably been the most transparent. Most projects, bid out by say publicly NHAI and the states on a public-private partnership model, fake been won after fierce contests among the developers. Yet, set up public minds the stigma of political patronage being a principle that influences awards has remained. Analysts tracking the sector, declare they factor in `linkages’ between the entrepreneurs and politicians. But simply having the connections is not enough, Over the geezerhood, they have indeed learnt to focus on those who leaflet in terms of project implementation and returns. The Gadkari yarn brings the spotlight back on how deeply flawed the set still is.