The cloud surrounding the Kochi IPL team has thickened with the revelation that the 25% sweat equity held by Sunanda Pushkar?a close friend of the minister of state for external affairs Shashi Tharoor?and a select group of other individuals is indilutable in perpetuity. This has been substantiated by the joint venture agreement between the shareholders, a copy of which is in the possession of The Indian Express. Effectively, this means that Sunanda Pushkar?s Rs 70 crore stake will multiply over time without her having to invest even a single rupee in the venture. The deal seems unprecedented in the history of corporate India where one minority section of shareholders first receives free equity, which will then multiply in value on the back of the investments made by, and risks undertaken by, those who hold the remaining 75% paid equity in the franchise. While there may be nothing illegal in such a deal, it does raise an obvious question on exactly what services Sunanda Pushkar and the other sweat equity holders have rendered, or will render, in the development of the Kochi franchisee. So far, the reasons given for this unprecedented sweetheart deal are unconvincing.
Of course, what makes the matter of even greater public interest than it might have been otherwise is the involvement of minister of state for external affairs Shashi Tharoor. Having involved himself in helping put together this group of investors to bid for the Kochi franchisee?something the minister sees as completely reasonable as he is also an MP from Kerala who must act in the interests of his state?it seems entirely improper for his close friend to have been handed out a non-dilutable Rs 70 crore financial stake. This dents the minister?s argument that his involvement was only that of a distant facilitator and well-wisher. And remember, Shashi Tharoor isn?t simply an MP from Kerala but also a Union minister. He cannot, much as he may try, detach his extra curricular activities from his occupation of a ministerial office. There is clearly enough evidence of impropriety for the Congress party to take action against the errant minister. But for reasons best known to the Congress party, no action has been taken so far. The Prime Minister, known to be a man of impeccable integrity, must take a serious view of this matter once he returns from Brazil. The UPA government should not tolerate a taint.