Guptas’ excellent Uzbekistan adventure

Since the Gupta brothers fled to Dubai, the next generation of the family has been busy. Key to their adventures is an alliance with another business family, the Jalans

The bankruptcy last year of India’s Jet Airways might be of little interest to South Africans but for one fact: the airline has just been bought by a consortium led by Gupta associate Murari Lal Jalan.

Likewise, the glitzy launch of major property developments in Uzbekistan would normally not make the local news. But these multibillion-rand projects are being undertaken by Jalan, in co-operation with members of the Gupta family. Jalan has, via his lawyers, denied any “relationship, business or otherwise”, with Ajay, Atul and Rajesh Gupta. He admitted to employing two Gupta children, a nephew and a son-in-law.

Last year, Jet Airways entered an insolvency resolution process akin to business rescue. Last Saturday, creditors voted in favour of a consortium consisting of Jalan and a UK venture capital outfit, Kalrock, reportedly for R2.2-billion. Kalrock did not respond to questions.

Last year amaBhungane revealed how the broader Jalan and Gupta families cemented ties through a Gupta mega-wedding when Shivangi Jalan married Atul’s son Shashank Singhala. Murari is Shivangi’s uncle.

London law firm Kobre & Kim replied on Jalan’s behalf: “It is a matter of public record that Mr Jalan’s brother’s daughter is married into the Gupta family. Mr Jalan accordingly knows some of the Gupta family through that extended family connection in India.

“However, the private marriage carries no business link or interest between the Jalan family and the Guptas. Mr Jalan and his brother maintain separate business entities. Their personal relationships have no connection with their business activities, which are separate and distinct.”

Former ANC MP Vytjie Mentor testified at the Zondo Commission that she was offered, allegedly by Ajay, the post of minister of public enterprises in 2010 if she got SAA to scrap its Mumbai route so Jet could take over. Mentor refused and Malusi Gigaba was appointed.

Jet was used by the Guptas to land their guests at Waterkloof air base for the infamous Sun City wedding in 2013.

Jalan’s lawyers denied any Gupta link with his Jet bid.

The broader Gupta family has joined the Jalans on an epic property development in Uzbekistan via MJ Developers. Glued to Jalan’s side is Gupta son-in-law Aakash Garg, who wed Vega Gupta at Sun City.

Jalan’s lawyers called Garg a “marketing adviser to MJ Developers”.

AmaBhungane previously showed he was a major shareholder in the new Uzbek property empire, “Minerva World of Knowledge”. Garg’s shareholding was reflected in company registration documents from 2019. The co-signatory is Murari Lal Jalan.

Jalan’s lawyers denied that Garg or any other member of the Gupta family funded or held shares in MJ Developers or its subsidiaries.

“We are instructed that Mr Garg and Mr Jalan considered a 50/50 joint venture in Uzbekistan. However, Mr Garg withdrew from the project before the company began trading. Mr Garg did not invest any funds and has no investment or ownership interest,” the lawyers said.

Photos from one glitzy MJ Developers’ event in Uzbekistan in February show younger-generation Guptas posing with Uzbek politicians. They included Kamal Singhala (Ajay’s son) and Varun Gupta (son of Achla, sister of the Gupta brothers).

Photos from another MJ launch event show Srikant Singhala (Atul’s son) on stage with the two Jalans and Uzbek dignitaries.

Jalan’s lawyers admitted that Srikant, Kamal and Varun were employees of MJ Developers. They denied Narayan or another apparent Gupta associate had “any role” in MJ Developers.

“These individuals did not share the stage with Mr Jalan and, following the launch events, many individuals came to meet and shake hands with Mr Jalan and were photographed in the process. This is not an indication of any special business or personal relationship with Mr Jalan and/or any unique privilege(s) granted to the individuals photographed.”

Recent court proceedings involving Garg in Bermuda revealed more interactions. In January 2018 Garg’s AGEV Investment signed a loan facility for $5-million with Jalan’s AgioImage. The next month Jalan extended a loan facility of $20-million to AGEV.

Jalan’s lawyers denied any impropriety regarding these transactions.

A month later, AGEV’s bid to buy the Guptas’ aircraft stuck in South Africa was thwarted by the SA Reserve Bank.

AmaBhungane would welcome comment from the Guptas, who have so far ignored our questions.