Congress shreds BJP defense of Piyush Goyal with document; asks 12 questions on Piramal transaction

The Congress on Monday released a document that rubbishes BJP’s explanation that Union Minister Piyush Goyal and his wife Seema Goyal sold their shares in Flashnet to Piramal Estates Pvt Ltd in July 2014, hence it was not included in his declaration of assets and liabilities to the PMO on July 25, 2014. The Congress alleged that in fact Piyush and Seema Goyal sold their Flashnet shares to Piramal Estates Pvt Ltd on September 29, 2014, and said BJP’s explanation has raised questions on the credibility of Modi Government ministers, the BJP and Prime Minister Narendra Modi himself.

On April 28, 2018, the Congress said it presented documents detailing the sale of the entire stock of 50,020 shares in Flashnet Info Solutions (India) Limited, owned by Piyush Goyal and his wife Seema Goyal, to Piramal Estates Private Limited for an astronomical price of ₹9,586 per share totalling ₹48 crores, which is 1,000 times of the book value.

In response, BJP’s press release of April 28 states in Piyush Goyal's defence that "The sale of Flashnet shares took place in July 2014 before the declaration of assets and liabilities was submitted on 25th July 2014 [to the PMO] and not on 29th September 2014."

However Congress on Monday released a copy of the Flashnet Directors' Report 2015, which clearly states September 29, 2014 as the date of sale of 27,010 Shares of Flashnet Info Solutions (India) Ltd by Piyush Goyal and sale of 23,010 shares by Seema Goyal to Piramal Estates Pvt Ltd. The document can be seen below:

Congress further pointed to BJP’s press release dated April 4, 2018 in defence of Piyush Goyal, which stated that "issues after 2010 in Shirdi Industries have nothing to do with Goyal, as he has no role in the company after 1st July 2010 and any distress relates to 2013 when Congress was in office”.

Congress said that BJP, "after getting caught concealing the fact of Goyal's ownership of Shirdi Industries through another firm 'Sajal Finance and Investments', in its Press Release dated April 28 2018” has changed the earlier stand to "He has nothing to do with Shirdi after he had resigned as Director on 1st July 2010 and some shares held in that company as investment were sold in December 2013..."

Congress’ 12 questions on Goyal-Piramal transaction

Congress then drew attention to the declaration made by Piyush Goyal for 2014—which is dated July 24, 2014—and which mentions ₹1,01,300 as the total value of “unquoted securities (book value)”. “Assuming he made an accurate declaration, this figure must have included the book value of the 53.95% of Flashnet’s equity he still owned at the time,” said Congress. But Piyush Goyal’s declaration of assets with the PMO dated March 31, 2015, by which time he had sold his shares in Flashnet, mentions the exact same sum—₹1,01,300—as the total value of unquoted securities at book value. Based on this, Congress asked the following questions of BJP and Piyush Goyal:

1. If the shares were sold on September 29, 2014, as is clear from the Directors' Report, 2015 (see above), why is there no change in the holding value of shares in Piyush Goyal’s asset declaration prior to sale and post sale?
2. Was Flashnet Info Solutions a company providing consulting services? Apart from Piyush Goyal, who were the consultants in the service of the company until 31-3-2014?
3. Is it not true that as on 31-3-2014, the total assets of the company (including trade receivables and loans & advances) was only ₹14.24 crore?
4. Is it not true that as on 31-3-2014 the net worth of the company (assets minus liabilities) was only ₹12.50 crore?
5. Is it not true that Shri and Smt Goyal, between them, held practically all the shares (50,020 shares) of the company?
6. Is it, therefore, not true that the value of the 50,020 shares, at best, could be only ₹12.50 crore as on 31-3-2014?
7. Why did the Piramal company buy the shares of Flashnet for nearly ₹50 crore — that is almost four times the value of the shares?
8. The only “asset” of Flashnet appears to have been Mr Piyush Goyal, the consultant working for Flashnet. Without that “asset” what was the value of Flashnet when the Piramal company bought the shares and took over Flashnet?
9. How was Flashnet with a net worth of ₹12.50 crore as on 31-3-2014 valued at ₹50 crore within a few months after 31-3-2014?
10. Was Mr Piramal buying only the 50,020 shares of Flashnet or was he buying something more for which he paid ₹50 crore?
11. Why was the name of Flashnet Info Solutions (India) Limited changed to Aasan Info Solutions Private Limited soon after its sale by Piyush Goyal and his wife Seema Goyal to Piramal Estates Private Limited? Why did all four members of the Piramal family resign from the Board of Flashnet just days after buying the company from Piyush Goyal and Seema Goyal?
12. Why is Piyush Goyal shying from making the valuation report of Flashnet Info Solutions (India) Limited public? When will he make this report public?

This article was updated at 10.06 pm on April 30, 2018 to correct a grammatical error in the first sentence