ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Start ups
    • Funding
    • Appointments
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Investigation: The inter-connected world of Indian defence business

Vasaka Promoters is a special purpose vehicle promoted by the Murugappa Group, Karvy Group and Amarjit Singh Bakshi and his company, Safdarjang Estates Pvt Ltd. The family connections build on from here.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Investigation: The inter-connected world of Indian defence business
Bakshi is chairman and managing director of Bakshi group which is involved in the automotive, infrastructure, defence, real estate and hospitality industries. Reuters

Sudhir Choudhrie, Indias biggest arms agent and lobbyist, who is being investigated by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), has made enough through his deals to have reportedly entered the real estate business. Investigating agencies tracking his activities say he is constructing a network of cinema halls, lifestyle malls and luxury hotels. 

These investigations are also providing tell-tale clues into how closely networked the world of defence contracts is -- and that there are neither permanent friends nor permanent enemies among those in the defence business. For instance, Alpha Design, a Bengaluru-based company with links to Choudhrie, which was acquired by Adani Defence Systems and Technologies in December for Rs 400 crore, has links to Russian and Israeli players and is promoted by Vasaka Promoters and Developers.

Adani Defence Systems and Technologies is a wholly-owned unit of Adani Enterprises of the Gautam Adani-led group.  Alpha Design, which has got industrial licences to manufacture defence equipment in India, had the following shareholders on March 31, 2018: Vasaka Promoters and Developers (3.21 crore shares and 85.8 per cent holding), Col H.S. Shankar (retd), who manages the company, (no shares) and One Earth Capital Ltd of Mauritius, a foreign institutional investor or FII (0.53 crore shares, 14.15 per cent holding).

On December 1, 2018, Alpha Design Technologies allotted equity shares to the following entities: Elara India Opportunities Fund Ltd, an FII (0.03 crore shares, 0.79 per cent holding for Rs 8.24 crore), Astraea Fund Ltd, Cayman Islands (0.01 crore shares, 0.26 per cent holding for Rs 4.52 crore) and Cogent Global PCC, Mauritius (0.01 crore shares, 0.26 per cent holding for Rs 3.21 crore). 

Following this, there was a change in shareholding status. Vasaka Promoters and Developers held 84.68 per cent in Alpha Design and Technologies, One Earth Capital Ltd of Mauritius held 13.98 per cent and Col Shankar (retd) held 0.03 per cent while FIIs together held 1.31 per cent of the company. 

There are two interesting aspects of these deals -- one, the transfer of 13.98 per cent equity stake of Alpha Design from three companies linked to Choudhrie and his associates to One Earth Capital, Mauritius and, two, the holding of Vasaka Promoters and Developers: the first because of the interlocking shareholding and, in the second case, the family relationships involved. 

Vasaka Promoters is a special purpose vehicle promoted by the Murugappa Group, Karvy Group and Amarjit Singh Bakshi and his company, Safdarjang Estates Pvt Ltd. The family connections build on from here. Bakshi is chairman and managing director of Bakshi group which is involved in the automotive, infrastructure, defence, real estate and hospitality industries. Safdarjang Estates is a Bakshi Group company and has on its board Amrita Bakshi, Amarjit Singh Bakshi's wife. 

Continental Defence Solutions Pvt Ltd, another Bakshi Group company, has been granted industrial licences for defence manufacturing by the government's Department of Industrial Policy and Promotion (DIPP). Bakshi's daughter, Simrin is married to Bhanu 
Choudhrie, Sudhir Choudhrie's son. 

Watch This Zee Business Video

Now, to cut a long story short, all the companies mentioned above -- the Bakshi Group companies, the Murugappa Group, the Karvy Group, Vasaka Promoters, One Earth Capital, Mauritius and Elara India Opportunities Fund Ltd -- have links with Alpha Design Technologies Pvt Ltd, a Sudhir Choudhrie front company, which has now been bought over by Adani Defence Systems and Technologies.

The rationale for the acquisition is obvious. It pitchforks the Adani Defence Systems into the big league where it can match the Tatas, Reliance Defence and the Mahindras.  Choudhrie, whose name figures among the biggest account holders in the infamous Panama Papers, has been one of the beneficiaries of the offset programme in defence. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Central Bureau of InvestigationEnforcement Directorate
Written By: IANS
Updated: Mon, Feb 25, 2019
12:25 pm
New Delhi, IANS
RELATED NEWS
Ex-NSE GOO Arrested: 'Audit report allegedly referred to Anand Subramanian as mysterious yogi' Ex-NSE GOO Arrested: 'Audit report allegedly referred to Anand Subramanian as mysterious yogi'
CBI alerts on online payment frauds, fake sanitizers CBI alerts on online payment frauds, fake sanitizers
This is how to stop defaulters from fleeing country This is how to stop defaulters from fleeing country
CBSE class 12 re-test: Demand made to scrap economics re-exam, give marks on good faith and trust CBSE class 12 re-test: Demand made to scrap economics re-exam, give marks on good faith and trust
Karti Chidambaram gets bail in INX Media corruption case Karti Chidambaram gets bail in INX Media corruption case

LATEST NEWS

Pathaan box office collection: Shah Rukh Khan-starrer breaks all records — Check collection figures of SRK's last 5 films

BPSC 68th admit card 2023 released at bpsc.bih.nic.in - Check exam date, steps to download, marking scheme, other details here

Hindenburg Impact: Bankers on Adani Enterprises’ Rs 20,000 cr FPO consider delay, price cut after rout - Report

UPSC Recruitment 2023: Apply for Marketing Specialist, other posts at upsc.gov.in - Check important dates, vacancies, and fees | Full detail here

Need to help India find alternatives to Russian military equipment: Biden admin tells lawmakers

IT Ministry inks pact with Siemens Healthineers to make indigenous low-cost MRI machines in India

Budge 2023: Rationalise, simplify direct and indirect taxes in India, US industry’s expectations from FM

NTPC Q3 Results: Net profit jumps nearly 5% YoY to Rs 4'854 cr; company announces dividend

Adani Group-Hindenburg: What options Adani Group have? Anil Singhvi decodes

India's forex reserves touched a six-months high, up by $1.727 billion- Economists explain why

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV