Matter of great shame: Anurag Thakur says FATF has flagged Gandhi family corruption

Rana Kapoor who was arrested by the ED in 2020 had told the agency that he was forced to buy a painting from Priyanka Gandhi

In its latest report the Financial Action Task Force (FATF) has included a case study which bears a resemblance to the Enforcement Directorate's case against former Yes Bank CMD, Rana Kapoor.

The report also has a reference to money laundering through paintings, including one purchased from the close relative of a member of the ruling party at that time. The painting was purchased for $264,000.

Information and Broadcasting Minister, Anurag Thakur cited the report and called it a great shame that the story of the Gandhi family's corruption is part of the FATF report. The FATF report however mentions no names, but the I&B minister referred to the accused as Mr. A.

It may be recalled that the ED had alleged that Kapoor had purchased a painting from Congress leader, Priyanka Gandhi.

The FATF in its report, 'Money Laundering and Terrorist Financing In The Arts And The Antiques Market' flagged the example of Mr. A. " Mr. A was the managing director and CEO of an Indian bank who misused his position during his tenure. He sanctioned loans of the Rupee equivalent of $628 million to business entities incurring losses or with negative credit, deliberately violating existing norms and regulations," the report said.

Further it also made a reference to a study, which revealed that the suspect bought art of no actual value at a price of $264,000 from a close associate of a corrupt politician in order pay kickbacks.

The ED had said that Kapoor had told the agency that he was forced to buy an M F Hussain painting from Congress leader Priyanka Gandhi for Rs 2 crore. The sale of the proceeds were utilised by the Gandhi family for the medical treatment of then Congress president in New York.

"One after another, new models of the Congress' corruption are coming to the fore. Sometimes, it is National Herald, sometimes it is Vadra land scam and sometimes, smoother. Now the FATF has published a case study that how a former union minister in the UPA government pressurised an individual into buying an average painting by Priyanka Gandhi at Rs 2 crore. It is a matter of great shame that the story of corruption of the Gandhi family has been made into a case study and being told to the whole world and that too by an organisation that works to stop terror financing.

While the FATF report does not name, Kapoor, Gandhi or Yes Bank, its details however match the case.

"Mr. A purchased mediocre art from politicians and in turn paid huge kickbacks through banking channels, projecting them as genuine pieces of art," the report says. "In one such incident, Mr. A purchased a piece of art from the close relative of a member of the ruling political party at that time for USD 264 000. However, the investigation revealed that this was an over-valuation, and that that the price paid was not for art, but rather was a bribe to influence the awarding of the prestigious Indian award 'Padma Bhushan' for himself. The trial is ongoing and Mr. A has been in judicial custody since March 2020," the FATF report read.

Kapoor was arrested by the Enforcement Directorate in 2020. He had told the agency that he was told to buy the painting by then union minister, Murli Deora. He was told that the refusal to buy the painting would not only prevent him from building a relationship with the Gandhi family, but also prevent him rom getting the Padma Bhushan.

"A money laundering investigation revealed that Mr. A used his influence to sanction the loan to a loss incurring entity, Company B. Investigations further revealed that Company B diverted the loan to 79 shell companies including Company C, which was controlled and owned by Mr. A and his daughters. Company C received USD 79 million and used part of the funds to purchase assets including art from famous painters and influential people. Mr. A invested a significant amount of proceeds in buying art of famous artists. Investigations revealed that he had purchased around 44 paintings," the FATF report said.