Sterling Group of Companies received largesse even after default

The Sandesara Group, under CBI and ED scanner for defaulting more than Rs 5,300 crore in bank loans as also bribing three senior income tax officials, was the cynosure of all eyes till agencies started chasing it.

It has now emerged that not only was the group, accused of defrauding banks since 2010, which has a strong presence in Gujarat, close to top leaders of several political parties, it continued to get government largesse in the shape of subsidised land till about three years back.

Sources say the CBI and ED have in their possession documents to prove that the Group, which runs Sterling Biotech, Sterling SEZ, Sterling Ports, Sterling Energy and PMT Machines, among others, continued to do business with the BJP’s Gujarat government till last year.

In June 2014, the Gujarat Maritime Board entered into a concessional agreement with Sterling Port for development a greenfield port at Dahej in Bharuch district. The project was to cost about Rs 4,060 crore over a period of 10-12 years. To help it develop the project, the company was awarded a 30-year concession. So much so that in the last three years, the Gujarat government has acquired over 100 hectares of land for the company.

Incidentally, …read more