How business partners of Guj CM Anandiben’s daughter landed a good deal

New Delhi, Feb 5: Business associates of Anar Jayesh Patel, 45, daughter of Gujarat Chief Minister Anandiben Patel, own a company that's sitting on 400 acres of land near the Gir lion sanctuary in the state —and 250 acres of that land was given to that company at an official rate of Rs 15 per square metre.

Anar Patel describes herself as a social worker and an entrepreneur. Filings with the Registrar of Companies (RoC), accessed by ET, show a number of transactions between her and her business partners that started when the Gujarat government allotted 250 acres of public land in 2010-11 to Wildwoods Resorts and Realties.

Wildwoods' current promoters, Dakshesh Shah and Amol Shripal Sheth, are business partners of Anar Patel. ET sent questions to all involved, the CM, her daughter, Anar's business partners and Gujarat revenue secretary. There was no response from the Gujarat government.

Anar Patel, Shah and Sheth responded to ET and insisted all transactions were above board. ET also spoke to Sanjay Dhanak, the original promoter of Wildwoods. The land is in Gujarat's Amreli district, next to the lion sanctuary at Gir, and therefore an attractive commercial proposition.

Wildwoods also received government nod to purchase a further 172 acres of agricultural land, as well as approval to change land use from agricultural to non-agricultural.

Anandiben Patel was the Gujarat revenue minister at that time. The revenue department is the nodal authority for such land allotments.

Anandiben retains the revenue portfolio as chief minister. Her office did not respond to ET's questions. Her office and that of the state revenue secretary did not respond to the question whether allotting such large land parcels to for-profit private enterprises was common official policy, especially when beneficiaries did not have a track record of setting up largescale facilities.

The original promoter of Wildwoods said plans to build a tourist resort on that land didn't work out. Current promoters insisted there were no proscriptions against building resorts in the area and that all regulatory clearances were obtained. No resort has been built so far.

WILDWOODS 1.0 & WILDWOODS 2.0

Wildwoods is owned by Parshva Texchem and Anil Infraplus Ltd. When the land allotment orders were issued in 2010, Wildwoods was owned by Dubai-based businessman Sanjay Dhanak. Shah and Sheth took control of the company in 2011-12.

Dhanak told ET that Wildwoods had applied for the land and had planned to build a tourist resort. Parshva and Anil Infraplus are co-investors in firms where Anar Patel has a substantial stake. ET's review of documents filed with the Registrar of Companies shows a host of transactions between companies that received the government's land allotment as well as other companies run by Shah and Sheth and companies where Anar Patel has significant equity presence.

Dhanak told ET he could not remember how much was paid for the 422 acres of land. Dakshesh Shah, too, did not elaborate on the issue. He also told ET he was not aware how much Wildwoods had paid for the 422 acres since he bought into the firm in 2011 and was "not aware of previous transactions".

Dhanak, however, told ET that Shah was his partner at the time of allotment and that "he has all the books that detail all the transactions including how much was paid to change land use".

Dhanak told ET that after the allotment he changed his mind about setting up a tourist resort and wanted to cash out. "Jama nahi(My plans did not work out). Shah did not want me to sell my stake in the market and insisted I transfer it to him," he said. Dhanak said he has never been in the business of setting up resorts and only has a jewellery business in Dubai.

In an emailed response to ET, Dakshesh Shah said Wildwoods promoters weren't aware of any official advisory against building resorts in that area. He also said: "The original promoter had acquired all permissions from the respective regulatory bodies relating to land development. After acquisition of stake, no further permissions/relaxations have been given."

Shah also said he was not aware how much Wildwoods had originally paid the government for the land or the amount spent as land conversion charges. A spokesperson for Amol Sheth also did not disclose the amount Wildwoods paid. Neither did he disclose how much current promoters paid to the original promoter of Wildwoods.

MANY TRANSACTIONS

Dakshesh Shah is Anar Patel's business partner with a 50% stake in Patel's company, Anar Project. Besides, Shah's firm Parshva Texchem, which co-owns Wildwoods, is also a substantial shareholder in Anar Patel's Relish Pharmaceuticals. Shah and Anar Patel are also directors in Anar Project, Relish Pharma and 24x7 Fitness.

"Mr Dakshesh R Shah is one of my business partners. Mr Shah and me are joint promoters in Relish Pharma and he has invested in Relish Pharma from Parshva Texchem & Ms Renuka is investor in Relish Pharma," Anar Patel said in an email response to ET.

Shah told ET that Anar Patel is his business partner. He did not elaborate on the details of their dealings. "I am a businessman and I do invest in prospective projects when I find the opportunity," he said. Shah also said Wildwoods has had no financial dealings with any firm associated with Anar Patel. However, RoC filings tell a different story:

1. Anar Project filings show a "payable" of Rs 10 lakh to Wildwoods.

2. Innovative Infraplus, majority owned by Shah, advanced a Rs 2.95-crore loan to Anar Project and Rs 20 lakh to Anar Patel herself.

3. Innovative Infraplus, where Anar Project has a substantial stake, received an "advance" of Rs 8.73 crore from Amol Sheth's Anil Ltd as well as Rs 11.015 crore from Anil Mega Food Park.

4. Innovative also lists Anil Infraplus and Anil Technoplus among its creditors to whom it owes Rs 2.6 crore and Rs 15 crore, respectively.

5. Anar Project had advanced Rs 9 crore to Anil Technoplus. Sheth says the money was an "advance" against "material supplied subsequently".

6. Innovative has also loaned money to 24x7 Fitness and Aahna Solar, firms in which Anar Patel is a substantial investor.

7. Proper Dealcom, in which Shah's firm Parshva has a stake, had loaned Rs 9 crore to Relish Pharma in 2011-12.

8.Parshva Texchem also loaned Rs 2.30 lakh to Gramshree-Women Empowerment, a Section 25 company promoted by Gujarat CM Anandiben Patel and Anar Patel.

9. Innovative has also given a Rs 15-lakh advance to Gramshree, which it lists as a creditor. Amol Sheth did not comment on his business dealings with Anar Patel.

According to filings made with RoC, Sheth and Anar were directors briefly in Aahna Solar. The shareholding pattern of Aahna shows Patel, Shah and Anil Infraplus, which co-owns Wildwoods, are equal partners. In its filings, Aahna Solar states its only business is solar power generation. However, its balance sheets show that its revenues are from a restaurant and food business.