EXCLUSIVE- How share value of loss making company of Anar Patel shot up by 100 times when mother became Gujarat CM

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Rifat Jawaid

On Friday it emerged how the business associates of Anar Patel had enjoyed the largesse from her revenue minister mother, Anandiben Patel in 2010-11.

Now, documents accessed by jantakareporter.com, reveal how the share value of a company owned by Anar jumped phenomenally around the time her mother became the chief minister of Gujarat.

Anar Patel owned Relish Pharmaceuticals Limited had its share valued at Rs 1 near the time Anandiben Patel became the chief minister of Gujarat in 2014. However, Anandiben Patel’s elevation to the top job in the state saw the share prices of Relish Pharma shoot up to Rs 100+. (see below)

BOM 524632 66.50 3.50 5.00 RELISH PHARMACEUTICALS LTD.

This considerable jump in Relish Pharma’s share value raises many questions primarily because while the net sales of Relish Pharma were on downward slide between 2013 and 2015, the company was running in loss without registering any significant profits.

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The net sales submitted before the Stock Exchange in 2013 was Rs 5.09 crore, which was reduced to Rs 4.49 crore in the following year. However, it was halved in 2015 as the company’s net sales fell to Rs 2.64 crore.

The sales were significantly higher in the years before 2013. The reason why the share price of the company remained consistently low was because of declining sales and company showing losses year after year.

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Relish Pharma, showed a loss of Rs 5.06 crore in 2013, Rs 68 lakh in 2014 before making a profit of Rs 12 lakh in the financial year ending in March 2015.

Relish Pharmaceuticals Ltd - accounts (4)

Relish Pharma has four directors while its managing director is none other than Dakshesh Shah, who is one of the promoters of Wildwoods Resorts, which had got 250 acres of land for just Rs 15 per square metre from Anandiben Patel.

The company’s chief financial officer is Sujay Mehta, who is a homeopathy doctor. This is bound to raise doubts as to how a qualified homeopathy doctor could be entrusted with the financial dealings of a BSE listed company.

Two of the top shareholders in Relish Pharma are Renuka Yogesh Parikh and Yogesh Biharilal Parikh  ( 250000 shares with 15.96% holding each).

Directors

There are, however, doubts over whether both have disclosed their citizenship status correctly. It’s suspected that both of them are in fact US citizens and not NRIs as stated by them.

A lawyer in Gujarat had recently filed complaints to both the FBI and the US tax authorities requesting them to investigate if both Renuka and Yogesh had lied about their citizenship status to legalise black money.

The complaint read, “…It may be that this doctor family is channelizing the black money generated by Gujarat CM family by shipments of handicrafts items of Gramshree Trust back in these companies legalizing the black money. This is the missing piece in this investigation of Central Govt Home Department – India.

“…Also kindly investigate whether the investment done in these companies have been from legitimate revenues earned in US by both Dr. Parikh and his wife.”

The alleged ambiguity over the nationalities of Dr Parikh and his wife has significant bearing particularly because of the Foreign Account Tax Compliance Act of the US.

Declaring themselves as NRIs means that they don’t fall under the purview of FATCA rules, but if indeed they’ve indulged in inaccuracies, then this may be bad news for them.

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