The Quint Impact: Chandy Questions Modi on British Firm De La Rue

After our report, questions have been raised on government’s decision to involve the currency printing company.

The day The Quint published a report on the Maharashtra government’s decision to grant land to a blacklisted British currency printing company in Aurangabad, the Congress has begun asking questions to Prime Minister Narendra Modi on his government’s decision to involve the firm, De La Rue, as a partner in the ‘Make in India’ initiative.

In a 3 January letter to Modi, former Kerala Chief Minister Oommen Chandy has sought to draw the prime minister’s notice to “a very serious issue with regard to the attempt made by Government of India to involve a UK-based company named De La Rue to work in tandem with the Central Government in expanding its operations in our country and printing plastic notes in India”.

The letter, a copy of which is available with The Quint, says:

Even though it was raised in public, there has been no response from the Government of India whatsoever in this matter. It is reported that the Union Finance Minister Mr Arun Jaitley in the month of December 2016, responding to a query, had stated that his ministry is no way connected with the British company.

Chandy’s letter further says:

The documents clearly shows (sic) that the company De La Rue has been working in India as part of the ‘Make in India’ initiative by the Prime Minister and has also been collaborating with the department of Commerce. This has raised serious doubts among the people and I shall be very grateful if you kindly look into the following points and take suitable action.

The points raised by Chandy are:

• On 7 to 9 November 2016, the India-UK summit was held in New Delhi. The summit, organised by the CII and the Department of Science and Technology, Government of India was inaugurated jointly by the British Prime Minister Theresa May and Indian Prime Minister Narendra Modi.
• The De La Rue Company, blacklisted by Government of India as per media reports, was one among the platinum partners. I would like to know on why a blacklisted company in India was being made a platinum partner of the joint collaborate effort between UK and India, addressed by your good self.
• I would also like to bring to your notice that the relevant links of the website which showed that De La Rue was a platinum sponsor of the India-UK summit was summarily removed from website pages after my press conference on this issue on 31 December 2016. I am enclosing the screenshots of the site before and after my press meet.
• The removal of this link has created a lot of suspicion with regard to the involvement of the De La Rue Company in a summit addressed by your good self and Prime Minister of UK. The CEO of the De La Rue, Martin Sutherland in his interview (published in their official website) on September 2016 had stated that the company has established an office in New Delhi and is working closely with the Department of Public Finance and Promotion of the Government of India to participate in ‘Make in India’ Initiative. The statement has not been contested by the Government till date. How a company reportedly blacklisted is able to establish an office in India and work closely with the Union Commerce Department, government of India is suspicious.

• The De La Rue Company in their annual report for the years 2013, 2014 and 2015 had stated that the company had no active trading in India. But, in the latest annual report of the company it has been stated that the De La Rue is trading actively in India in 2016. Surprisingly the company recorded 33 percent growth in the value of its share from the month April to November 2016. This sharp increase in the share value of the company cannot happen if the company is not trading in India. I would request the Government of India to clear the speculations about this issue.
• In 2011, the then Finance Minister of State (MoS), Sri Namo Narain Meena had stated in Rajya Sabha that the security clearance was denied to De La Rue after they failed to comply to the specifications in the contract. Whether the concerned ministry has lifted the ban on the company has not been explained till this date.
• Kindly enquire if there are any financial transactions or collaboration that exists between Government of India and the company De La Rue.
• The MoS Finance, Sri Arjun Ram Meghwal on 9 December 2016, had stated in the Parliament that India has taken steps to print plastic currency. The National newspaper The Telegraph in a report stated that three companies including De La Rue has been shortlisted for printing plastic notes.
• I request you to advice the concerned ministry to publish the list of companies that are shortlisted/qualified for printing plastic currency in India. For your kind perusal, I am hereby enclosing all the relevant documents I had circulated to the media in my press conference on 31 December 2016.

On its part, De La Rue claimed in a 9 December 2016 statement that the company “is not supplying paper for printing of Indian currency and we are not associated with printing currency in India at present in any form. De La Rue has received no notice nor are we aware that we are blacklisted in India”.

The statement also says that “De La Rue does not supply currency paper and is not printing currency for Pakistan and would never supply currency paper manufactured for one country to another.”