In the Money

New filings with the MCA show business is booming for Jay Amitbhai Shah

31 October 2019
Jay Shah’s star is rising. Since the Narendra Modi-led Bharatiya Janata Party government came to power, the net worth of his firm Kusum Finserve rose by Rs 24.61 crore and its total income grew by a whopping Rs 116.37 crore. In mid October, he was elected as BCCI secretary.
Rafiq Maqbool / AP
Jay Shah’s star is rising. Since the Narendra Modi-led Bharatiya Janata Party government came to power, the net worth of his firm Kusum Finserve rose by Rs 24.61 crore and its total income grew by a whopping Rs 116.37 crore. In mid October, he was elected as BCCI secretary.
Rafiq Maqbool / AP

According to long-overdue filings recently uploaded to the ministry of corporate affairs website, the business of Jay Shah, the home minister Amit Shah’s son, is flourishing. The Caravan accessed trade documents filed by Kusum Finserve LLP, in which Jay is a designated partner—a position equivalent to a director of a company. Since the Narendra Modi-led Bharatiya Janata Party government came to power, between the financial years 2015 and 2019, the net worth of Jay Shah’s Kusum Finserve rose by Rs 24.61 crore. Its net fixed assets grew by Rs 22.73 crore, its current assets grew by Rs 33.05 crore and its total income grew by a whopping Rs 116.37 crore. The younger Shah’s star is rising—in mid October, he was elected as secretary to the Board of Control for Cricket in India, the national governing body for the sport.

The Caravan reported in August 2018 that Jay’s Kusum Finserve had secured a dramatic increase in credit facilities since 2016 despite its poor finances in preceding years. In 2016, Amit Shah had mortgaged two of his properties to help secure a credit facility of Rs 25 crore for his son’s firm.

LLPs are required to file their statement of accounts by 30 October each year. Failing to do so is an offence under the Limited Liability Partnership Act, and can invite a fine of up to Rs 5 lakh. In January this year, The Caravan reported that the firm’s statements for the financial years 2017 and 2018 were still due. Even as the BJP government and the ministry of corporate affairs cracked down on firms that failed to file their financial statements, Kusum Finserve had missed its deadlines for two consecutive years.

The firm’s financial statements were resultantly not available for public viewing through the general election held earlier this year. The BJP won the polls with a resounding majority. Amit Shah, who won from the Gandhinagar constituency in Gujarat, was appointed the home minister in Modi’s second cabinet. The financial statements were uploaded in August 2019, nearly three months after the election result was announced. Though the firm has now filed balance sheets until the latest financial year, the documents offer no clarity on the nature of Kusum Finserve’s business. The Ahmedabad Registrar of Companies, under whose jurisdiction Kusum Finserve falls, did not respond to queries sent ahead of this article.

Kaushal Shroff is a staff writer at The Caravan.

Keywords: Jay Shah Kusum Finserve Amit Shah Narendra Modi Bharatiya Janata Party The Ministry of Corporate Affairs
COMMENT