Ethics heat on US Ambassador designate to India

While the White House confirmed that Kenneth Juster is indeed President Donald Trump’s nominee to be the next US Ambassador to India, the news has evoked mixed reactions.

While it is hailed as good news for business, given Juster’s background and involvement with India, there are murmurs of conflicts of interest and hints that the nomination may face hurdles in the US Congress which has to ratify the President’s choice.

Juster, who has headed US-India High Technology Cooperation Group and was also deeply involved with the US-India Next Steps in Strategic Partnership Initiative. He was also on the board of US-India Business Council, a trade association of over 350 Indian and American corporations.

Juster is expected to play a key role in lobbying for relaxation of immigration and visa rules for Indians, a key relief being sought by India from the Trump administration.

But it is the sustained investment made in Indian companies by Warburg Pincus, which Juster joined in 2010 and left in January this year to take up the assignment in the White House, which has raised eyebrows.

While the formal announcement is expected to be made during the visit of Prime Minister Narendra Modi to Washington next week, the list of investments made by his former company, as reported in the US media, is formidable. While NH has not been able to independently verify the claims, some of the claims published are as follows:

• Warburg Pincus has invested in 19 Indian companies so far.
• 17 of these were made after Kenneth Juster came on board in 2010.
• In 2010, it invested in Chennai-headquartered IMC Limited which provides liquid storage facilities at most of the ports in India.
• In 2011, the firm invested in Continental Warehousing Corporation (Nhava Sheva), which operates container terminal services at major Indian ports.
• It also invested in Diligent Power Private Ltd, owned by the Dainik Bhaskar Group.
• In 2012, the firm invested in two other companies—online marketplace Quikr and retail lender Capital First.
• In 2013, Warburg Pincus invested in CK Birla group’s Avtec for buying out another investor’s stake for an undisclosed amount. Avtec manufactures automobile components in India.
• It also invested in fashion apparel maker Biba.
• In 2014, the firm is said to have invested in online automobile marketplace CarTrade in addition to Kerala based jewelry house Kalyan Jewelers.
• It also invested in Laurus Labs, a generic drugs manufacturer based in Hyderabad.
• In 2015 it made a foray into real estate by investing $284 million in Piramal Realty.
• In 2016, it invested in trucking company Rovio and supply chain company Stellar Value Chain Solutions.
• In 2017, it claims to have invested in Ajay Bijli’s multiplex chain PVR Cinemas.
• In June, 2017 it bought stakes in three Tata subsidiaries, namely Tata Technologies, Tata Motors and Tata Capital
• It is also said to have bought stakes in an insurance company co-owned by ICICI Bank.