http://www.caravanmagazine.in/vantage/jay-shah-sue-wire-responses-investigative-journalism-india

In Light Of Jay Shah’s Decision To Sue The Wire, A Look At Recent Responses
To Investigative Journalism In India

By SAGAR | 10 October 2017

SAM PANTHAKY/AFP/GETTY IMAGES

On 8 October, the news website The Wire published a report regarding Temple
Enterprise, a company owned by Jay Amitbhai Shah, the son of the BJP's
national president Amit Shah. Later that day, the businessman announced
that he would be suing the publication for criminal defamation, and for
damages worth Rs 100 crore.


On 8 October, the news website The Wire published a report on the financial
growth of Temple Enterprise Private Limited, a company owned by Jay Shah,
the son of the national president of the Bharatiya Janata Party, Amit Shah.
The report stated that, according to its filings with the registrar of
companies, the turnover of Jay’s company “increased 16,000 times over in
the year following the election of Narendra Modi as prime minister and the
elevation of his father to the post of party president.”

Citing the balance sheets and annual reports that it had filed with the
RoC, the report noted that Temple Enterprise is described to have engaged
in wholesale trade, and that over 95 percent of its revenues “come from the
sale of agricultural products.” Further, it said, Shah’s company “engaged
in negligible activity” and recorded losses of Rs 6,230 and Rs 1,724 in the
financial years ending in 2013 and 2014 respectively. “In 2014-15, it
showed a profit of Rs 18,728 on revenues of only Rs 50,000,” the report
added. “However, in 2015-16, the firm’s revenues jumped to over Rs 80.5
crore, a growth of 16 lakh percent.” According to the filings, the report
noted, in October 2016, Jay Shah’s company “suddenly stopped its business
activities altogether, declaring, in its director’s report, that Temple’s
net worth had ‘fully eroded’ because of the loss it posted that year of Rs
1.4 crore and its losses over earlier years.”

In addition to those of Temple Enterprise, The Wire report included details
of the filings of Kusum Finserve, a limited liability partnership
“incorporated in July 2015 with Jay Shah owning a 60% stake in it.”
According to the report, the Indian Renewable Energy Development Agency
(IREDA), a public sector unit functioning under the ministry of new and
renewable energy, granted Kusum Finserve a loan of Rs 10.35 crore, to set
up a wind-energy plant in Ratlam, Madhya Pradesh. At the time the loan was
granted, Piyush Goyal, now the union minister for railways and coal, held
the post of the minister of state (independent charge) for power, and was
also minister of state (independent charge) for new and renewable energy.

A report published in National Herald—often said to be the mouthpiece of
the Congress party— noted that according to the norms listed on the IREDA’s
website, it can sanction loans to wind-farm projects with generational
capacities of upto 1 Megawatt. Shah’s company proposed a 2.1 MW plant, the
report stated. Such loans can, the IREDA website states, be given for a
maximum of 70 percent of the eligible machine cost for the project. In
India, the cost of installing a 1 MW wind farm typically lies between
roughly Rs 4 and 7 crore. The National Herald reported noted that, even for
the costliest plant, adhering to its own 70-percent cap, the maximum loan
the IREDA could grant would be approximately Rs 4.9 crore. Shah’s company
received nearly twice that amount.

The Wire’s report noted that in response to its queries, Jay’s lawyer Manik
Dogra, speaking on his behalf, said that Jay was a “private citizen” doing
“legitimate business.” Dogra added: “If you or anyone in the print,
electronic or digital media carries and/or broadcasts any defamatory and/or
false imputations including those which breach his fundamental right of
privacy and/or defame him, Jay Shah reserves the right to prosecute and sue
such person/entity.”

The report resulted in an uproar on social media. The story was shared
widely, and the hashtag “AmitShahKiLoot” began to trend on Twitter. Many
Twitter users also began to criticise Rohini Singh, the author of the
story. (Previously employed with the publication Economic Times, in 2011,
Singh broke the news of the businessman Robert Vadra’s dealings with the
real-estate giant DLF.) Amit Malviya, the chief of the BJP’s IT cell,
tweeted: “Discredited journalist who was plugging for a political party in
UP, now a prized possession of another rag!” Malviya and several prominent
supporters of the ruling party began employing the hashtag
“LiesAgainstShah.” While one Twitter user termed Singh an “absolute
illiterate,” others named her an “idiot,” a “Congressi,” and termed her
journalism “fake news.”

Later in the day, Goyal, the cabinet minister, called a press conference to
discuss Singh’s report. He said that the article contained “absolutely no
substance,” and that it was “derogatory, defamatory, hallowed and
baseless.” Claiming that Jay ran a “fully legitimate business,” Goyal said
that the businessman “has decided to file criminal defamation suit against
the author, editors and the owners of The Wire. They shall be prosecuted
for criminal defamation and sued for an amount of Rs 100 crore in the
Ahmedabad court.”

Goyal’s words were echoed in a public statement by Jay, in which he
confirmed that he was suing Singh and The Wire. “The article makes false,
derogatory and defamatory imputation against me by creating in the minds of
right-thinking people an impression that my business owes its ‘success’ to
my father Shri Amitbhai Shah’s political position,” Jay wrote.

It is unclear why Goyal, a cabinet minister, came to Jay’s defense, but he
was not the only government official in the businessman’s corner. Tushar
Mehta, the additional solicitor to the central government, told NDTV that
he was likely to represent Jay in the matter. “I have taken permission from
the Law Ministry on 6th October for this issue. I am being consulted in
this case. I may even appear for the case in court,” Mehta reportedly said.

Jay Shah is certainly not the first businessman to decide to register a
lawsuit against a journalist or a publication that investigated the
workings of his enterprise. He is one in a growing list of business owners
and corporations in India who have responded to critical investigative
journalism with legal action.

In July, the senior journalist Paranjoy Guha Thakurta resigned from his
post as the editor of the Economic and Political Weekly following a legal
notice served by the Adani Group, whose owner Gautam Adani is understood to
be close to Prime Minister Narendra Modi. The legal notice concerned a June
article by Guha Thakurta, in which the editor, along with three others,
examined whether the conglomerate received an undue refund of over Rs 500
crore from the finance ministry under the Modi government. The notice asked
for the article to be taken down. In a meeting with Guha Thakurta, the
board members of the Sameeksha Trust, the organisation that runs the
journal, asked the editor to comply with the notice. (Guha Thakurta’s
article was republished by The Wire, and is available on its website.)

Earlier this year, in March 2017, the member of parliament Rajeev
Chandrasekhar, who heads the financial services company Jupiter Capital,
and who is the vice president of the BJP-led National Democratic Alliance
in Kerala, obtained an ex-parte injunction against two articles published
in The Wire. The first article, written by the journalist Sandeep Bhushan,
expressed concerns regarding Chandrasekhar’s investment in the TV channel
Republic, and questioned whether the channel’s news coverage would be
impacted by the investor’s political stances. The second, written by Sachin
Rao, who is said to be close to Rahul Gandhi, discussed whether
Chandrasekhar’s position on the standing committee on defence in the Rajya
Sabha constituted a conflict of interest, as Jupiter Capital has assets in
the defence sector. Chandrasekhar filed a civil defamation suit against the
publication, as a part of which he obtained the injunction.

The publication was recently sued by the Essel group for defamation as
well, after it ran a story regarding a report by the Comptroller and
Auditor General of India. In the report, the central agency had published
findings regarding gross irregularities in the state-run lottery in
Mizoram, to the tune of Rs 11,000 crore. The CAG had named two companies
under the Essel group in its report, in addition to state agencies. After
the Gauhati High Court stayed the case in early October, the Essel group
withdrew it.

Other similar examples abound—in early August, a district court in Delhi
granted an ex-parte injunction against the book Godman to Tycoon: The
Untold Story of Baba Ramdev. In it, the investigative journalist Priyanka
Pathak-Narain had detailed Ramdev’s rise from a yoga guru in Haridwar to
the founding head of India’s second largest FMCG group, Patanjali. In
December 2016, Jet Airways and its founder-chairman Naresh Goyal filed two
defamation lawsuits against the journalist Josy Joseph, seeking Rs 1,000
crore in damages. The lawsuit was in response to details contained in
Joseph’s book A Feast for Vultures. Joseph reported that in 2001, the chief
of the Intelligence Bureau, KP Singh, and its joint director Anjan Ghosh
wrote to the home ministry stating that the agency had “confirmed
information” of contact between Naresh and the underworld bosses Chhota
Shakeel and Dawood Ibrahim.

This publication too, has seen legal action against it. In mid 2015, The
Caravan published a series of investigative stories on the functioning of
the Essar conglomerate, including an in-depth cover story regarding its
influence among prominent politicians and bureaucrats. In August that year,
the Essar Group filed a defamation lawsuit against The Caravan, its
editors, its owner Delhi Press, and Krishn Kaushik, who reported the story.
The group filed the suit in a city civil court in Ahmedabad, and sued for
Rs 250 crore in damages.

Beyond the threat of lawsuits by businessmen and industrialists, another
spectre looms over media houses in India—of likely politically motivated
action by government and law-enforcement agencies against journalists,
especially those critical of the ruling establishment. In June this year,
the Central Bureau of Investigation raided the residences and offices of
Radhika and Prannoy Roy, the promoters of the news channel NDTV, in
connection with a complaint regarding alleged financial impropriety in the
channel’s dealings with ICICI Bank. The properties were raided soon after
NDTV’s executive editor and anchor Nidhi Razdan got into an on-air verbal
spat with the BJP spokesperson Sambit Patra, who accused the channel of
having a politically motivated “agenda” on the subject of cow slaughter.
Razdan had asked Patra to either apologise or leave the show.

Many in the media fraternity and among civil society saw the NDTV raids as
more than coincidental. The Editors Guild of India expressed concern over
the raid, stating that the “entry of police and other agencies into the
media offices is a serious matter.” “For the BJP’s sympathisers and NDTV’s
detractors, it is convenient to defend the raids as falling within the
letter of CBI procedure and due legal process,” Anant Nath, the editor of
this publication, wrote in the magazine’s July issue. But, Nath added,
recent precedents in countries such as Turkey and Russia—both of which are
under stridently nationalist governments, and have seen a devolution of
press freedom—“remind us that India’s proponents of democracy still have
every cause to be alarmed.”

International journalists investigating Indian companies do not appear any
more immune. Earlier this month, the Australian TV channel Four Corners
uploaded a documentary to its website. Titled “Digging Into Adani,” the
film looks into the workings of the Adani group, which is set to build
Australia’s largest coal mine and will likely receive a loan of 1 billion
Australian dollars from its government’s funds. In a note on its website,
the channel described the difficulties its reporters faced in India: “While
attempting to film and gather information about Adani’s operations, the
Four Corners team had their cameras shut down, their footage deleted and
were questioned for hours by police.” In a promotional video for the
documentary, the reporter Stephen Long stated that the officials from the
crime branch in Gujarat visited him at his hotel within his day of his
arrival at Mundra port, and that the Four Corners team left Mundra in the
middle of the night. “It was obvious they [the police] knew why we were
there,” Long said in the promotional video. “But everybody was avoiding the
A-word: Adani.” They were “left in no doubt that their investigations into
the Indian company triggered the police action,” the note added.

In August 2016, Outlook magazine published a cover story titled “Operation
BabyLift,” in which the journalist Neha Dixit reported on the trafficking
of 31 tribal girls out of Assam, by organisations affiliated to the
Rashtriya Swayamsevak Sangh, the BJP’s ideological parent. Following the
story’s publication, SC Koyal, the assistant solicitor general of the
government of India at the Gauhati High Court, along with Bijon Mahajan, a
spokesperson of the BJP, registered a police complaint against Dixit and
Outlook for “inciting communal hatred.” The complaint reportedly quoted
only one line from Dixit’s piece. “Threats against journalists may be an
occupational hazard but what we are seeing today is a more serious attempt
to shoot the messenger,” Krishna Prasad, the former editor of Outlook, told
the media website The Hoot. (Soon after the story was released, Prasad was
removed from his position at the magazine.)

On 9 October, Siddharth Vardarajan, the founding editor of The Wire, posted
a picture on his Twitter account. It was an image of the first page of the
criminal complaint filed by Jay Shah against the publication and its
editors. “The Wire won’t be intimidated by Modi govt’s attack on media
freedom,” Varadarajan wrote. The publication “will fight this baseless
defamation case,” he told me.

It is to be noted that India has slipped three places down on the World
Press Freedom Index this year. It is now ranked 136, behind countries such
as Palestine, Afghanistan, Uganda, Chad, Kuwait, the UAE and Burma. In an
editorial published two days after the raids on NDTV’s promoters, the New
York Times expressed concern that the state of the Indian media had
worsened since the BJP government’s rise to power. “Since Mr Modi took
office in 2014, journalists have faced increasing pressures. They risk
their careers—or lives—to report news that is critical of the government or
delves into matters that powerful politicians and business interests do not
want exposed,” the editorial said. “News outlets that run afoul of the
government can lose access to officials. The temptation to self-censor has
grown, and news reports are increasingly marked by a shrill nationalism
that toes the government line.” As the alarm bells over the threats to
press freedom in India reverberate across the world, one hopes that they
will not fall on deaf ears.

Sagar is a web reporter at The Caravan.


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