Worthless art sold for $2.64L by then ruling party member: FATF
New Delhi, March 13
The Financial Action Task Force (FATF) last month mentioned an Indian case study involving the purchase of a piece of art by “Mr A” from a close relative of a member of the then ruling party for $2,64,000 in its chapter on “Purchase Art with Illicit Proceeds and Use Art of No Value to Pay Kickbacks”.
No names mentioned, it is understood buyer “Mr A”, who has been in judicial custody since March 2020, is Rana Kapoor, the former Yes Bank chief, and the seller of the painting of “no significant value” is Priyanka Gandhi Vadra.
The FATF mention is among the 70 case studies it has touched upon, on the basis of information given by national investigating agencies, in its report on “Money Laundering and Terrorist Financing in the Art and Antiquities Market” released in Paris on February 27. The FATF said “Mr A” was the CEO of an Indian bank who misused his position by sanctioning loans equivalent of $628 million to business entities incurring losses or with negative credit, deliberately violating norms and regulations.
“Mr A” paid kickbacks to receive awards and purchased “mediocre art” from politicians. In one such incident, he purchased a piece of art from a close relative of a member of the ruling party for $2,64,000. “The investigation revealed that this was an overvaluation and that the price paid was not for art, but a bribe to influence the ‘awarding of Padma Bhushan’ to him,” the report said.
