Government auditor CAG has flayed IREDA for “violation of financial guidelines’ in connection with Rs48.65-crore loan to Purti Sakhar Karkhana for which company's promoters and directors including Nitin Gadkari had given ‘personal guarantee’, a charge the Nagpur-based company denied.
The Purti Sakhar Karkhana limited (PSKl) was sanctioned a term loan of Rs48.65 crore by Indian Renewable Energy Development Agency limited in March 2002 for setting up a 22 MW bagasse based co-generation power project in Nagpur.
The CAG report said “promoters and/or directors of the borrower company had given their personal guarantee for the loan.” As per the report, the promoters and directors of the company were Nitin Jayaram Gadkari, Jayakumar Rameshji Verma, Anandrao Motiram Raut, Astik Janglu Sahare and Vishnu Govind Chorghade.