BJP MP named in Paradise Papers investigation on ‘maun vrat’

Asserting that he was observing a week-long silence ( Maun Vrat) , BJP Member of Parliament R.K. Sinha on Monday refused to comment on reports about his offshore holdings in Malta

The Rajya Sabha member’s name figured in the details released from voluminous documents leaked from the Bermuda based law firm Appleby by the International Consortium of Investigative Journalists (ICIJ) on Sunday. The details were published on Monday by ICIJ’s Indian partner, The Indian Express.

A former journalist, Sinha was elected to the Rajya Sabha from 2014 and declared wealth worth over ₹800 Crore, making him one of the richest MPs. Ravindra Kishore Sinha, known as RK in his friends’ circle, is the founder of the highly successful SIS (Security and Intelligence Services) which offers security solutions to both government and corporate bodies besides banks.

According to records of the Malta registry, SIS Asia Pacific Holdings Ltd (SAPHL), registered in Malta in 2008, is a subsidiary of SIS. Sinha is listed as a minority shareholder while wife Rita Kishore Sinha is a director of SAPHL. Records show that SIS International Holdings Limited (SIHL), a company incorporated in British Virgin Islands, holds 3,999,999 shares in SAPHL while 1 share is with Ravindra Kishore Sinha.

While ICIJ has clarified that the transactions reported by it may not be ‘unlawful’, the necessity to have shell companies, registering them in tax havens and taking the help of a Bermuda firm do indicate a complex web of financial deals to either hide wealth or to avoid taxes or worse, money laundering.

Sinha is a graduate of Political Science and Law and started his career as a journalist. He created a security and intelligence service to help retired soldiers after the Indo-Pak war of 1971, which provides services in India and Australia. Sinha's company with more than 250 branches showed a transaction of approx. 4000 Crore in 2016.

He also owns a chain of schools named "The Indian Public School".

According to ICIJ's website, Sinha, one of India's richest MPs, created SIS Asia Pacific Holdings Pvt Ltd, a subsidiary company of 'SIS Securities' in Malta. The company's director is Sinha's wife and some of the shares are also on Sinha's name.

SIS Asia Pacific Holdings Pvt Ltd created a new company named 'SIS International Holding' in British Virgin Islands. The Indian Express alleged Sinha did not mention this company in his affidavit filed before the Rajya Sabha elections.

But in documents of SIS (India) Limited filed before the Securities and Exchange Board of India (SEBI) on August 4, 2017 – that’s the date mentioned on the final offer document on the SEBI website – Ravindra Kishore Sinha declared his interests in all these companies. The addresses of Sinha (East of Kailash, New Delhi; and Omaxe Forest, Sector-92, NOIDA) and his wife (East of Kailash, New Delhi) at the Malta registry are the same as mentioned in his declaration before the Election Commission.

In his response to the ICIJ and The Indian Express, Sinha described the two companies as ‘indirect subsidiaries’ of SIS Ltd. He has no ‘direct interest’ in these companies, he said, but since laws in these countries required every company to have at least two shareholders, he held one share in each of the two companies.