Apart from Amitabh Bachchan and Vijay Mallya, one of the other names that popped up in the Paradise Papers leak is that of Civil Aviation Minister Jayant Sinha.
The International Consortium of Investigative Journalists (ICIJ) on 5 November revealed the 'Paradise Papers', touting it to be the 'biggest data leak which reveals trails of global corporates in secret tax havens'.
India ranks 19th among 180 countries, reported the Indian Express, which was part of the 96 organisations that led the investigation in collaboration with the ICIJ.
Understanding Jayant Sinha’s Role
Before serving as Lok Sabha MP and MoS in Narendra Modi's cabinet, Jayant Sinha was employed with the Omidyar Network.
The Omidyar Network is a ‘philanthropic investment firm’, which has made investments in several companies across the world, including Quickr, Aspiring Minds, Anudip Foundation and several others in India.
When he joined Omidyar in 2009, the corporation was in the process of investing in another US-based firm D.Light Design – a solar-technology company that provides consumer durables to off-grid families.
D.Light also had a subsidiary company based in Cayman islands in the Caribbean sea.
The Indian Express-investigation reveals that Sinha served as director of D.Light – a fact he did not mention in his declaration at the time of assembly polls in 2014, nor when he took over as MoS in 2016.
Indian Express notes that he did, however, mention in his 2016 declaration to the PMO, that:
The declarant may be entitled to carried interest in certain investments made by Omidyar Network entities in the years 2009 to 2013. The value of the carried interest that may be received by the declarant (if any) is not capable of determination.
However, Sinha notes in his tweet that he complied with tax norms and has disclosed all details to Express.
D.Light’s Financial Transactions
The Express's investigation shows that Sinha was the Director of D.Light in 2012, when the company took a loan of USD 3 million from a Netherlands-based investor, through its subsidiary based in Cayman islands.
A document legalising the loan transaction with Appleby, the offshore legal firm whose records are where 'Paradise Papers' stem from, shows Sinha as one of the six signatories.
The Netherlands-based investor was a microfinance company named Global Commercial Microfinance Consortium II BV. The company looks to raise around USD 101.25 million from investors, and in turn inject this money as loans into companies across the world.
Sinha Clarifies
When the Indian Express reached out to Sinha, he replied by saying that he was made the Omidyar representative on D.Light's board from 2010 to 2014.
Till December 2013, I was on the Board as Omidyar Network’s representative. From January 2014 till November 2014, I served on the Board as an Independent Director. I resigned as a Board Member when I joined the Union Council of Ministers in November 2014. I am not associated with these companies any longer.
He also added that he "did not receive any compensation" for serving as a D.Light Board Member as he was essentially an Omidyar representative. When he did serve as an Independent Director in D.Light, he received a consulting fee as well as shares in the company, all of which has been disclosed in tax filings, he said.
Sinha later took to Twitter to clarify the allegations laid against his name.
The daily also reached out to Omidyar Network, who responded by saying that while Sinha did serve on their board, the details of their ‘for-profit investments’ could not be disclosed as a policy decision taken by both the venture-capital community as well as the corporation themselves.
(With inputs from the Indian Express)
(Breathe In, Breathe Out: Are you finding it tough to breathe polluted air? Join hands with FIT to find #PollutionKaSolution. Send in your suggestions to fit@thequint.com or WhatsApp @ +919999008335)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)