Kullu Gods Pvt Ltd

• $300-million mountain resort and ski village, over 133 acres in Kulu Valley
• Said to be country's largest FDI-promoted tourism project
• Plans 130 chalets, 485-suite condo, several luxury hotels and other facilities
• Also plans major temple dedicated to promoting Hindutva
• HSV MD John Sims is leading figure in ISKCON movement in India

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• Widely believed to be a property development/real estate venture masquerading as tourism project
• Helps it avoid scrutiny on source of foreign funds and shareholders that property development projects need
• ED now investigating HSV's FEMA violation, source of financing through Cyprus-registered company
• Fellow ISKCON devotee Alfred Ford, great-grandson of the legendary Henry Ford, has resigned from HSV board
• MoU with HP govt allows sale of 300 units to non-Himachalis
• HSV trying to acquire more land, wooing villagers with foreign junkets

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Ford vs the Icons

Outlook

What Sims actually had in mind when he first presented his project to the HP cabinet in 2004 was to acquire control of the entire stretch of the Kullu valley above 2,000 metres north of Naggar on the left bank of the Beas river. Describing it as the 'project influence area' in the draft memorandum, Sims wanted the government to give an undertaking that no other developer would be given access to this area. The draft also sought permission to "develop a new hill station" spread over 150 acres, where rights of development/ownership could be sub-leased or sold to sub-developers. This was later amended in the final MoU after a hue and cry was raised, but not before one key clause was inserted, which made it binding on the government to assist the company in acquiring other lands as and when it might be needed for the project.

But if the intention was to build a new township, why disguise it as a tourism project? Because while FDI for real estate projects needs clearance by the Foreign Investment Promotion Board (FIPB) and requires full and complete shareholder and director disclosure, for tourism, it can come in through the automatic route, with few questions asked. Besides, one of HSV's shareholders is a Cyprus-based company, Martilis Holdings Ltd, which too is currently under the ED scanner. Companies wanting to mask the trail of their funds inflow register in tax havens like Cyprus, where it is extremely difficult to trace the source of funds coming into bank accounts, as they are governed by their own secrecy laws. Martilis, Sims says, is actually owned by Apollo Real Estate Advisors Ltd of UK, and "Apollo's lawyers," he goes on to add, "for some reason, advised them to register in Cyprus". The ED is enquiring into whether Martilis is actually owned by Apollo.

In another curious twist, Alfred Ford has distanced himself from the HSV. He resigned from its board of directors in February 2005, just two-and-a-half months after joining and is now a shareholder, with 10 per cent equity. Why would Ford, a fellow ISKCON devotee and a practising Hindu like Sims, resign from the board of a company that promotes Hindutva? Asked the question, Sims told Outlook that "Alfred resigned because he cannot actively participate in the affairs of the HSV, and was told by his lawyers not to keep his name on the board of directors. He is, however, the chairman of the company and that is our obligation to the HP government."

hat is the real story, though? Did Ford get uneasy about HSV's plans? In a letter to the HP government, his CFO clearly states that Ford would support the project "provided he obtained commercially reasonable bank financing seen internationally in such developments, and assuming such financing would be secured only by the acquired assets themselves". Since external commercial borrowings in the real estate sector are not permitted under FEMA and securing such borrowings against real estate assets (the land in Manali) in India is prohibited, Ford is clearly implying that he will not be able to invest any more. So, where is the money going to come from?

Meanwhile at ground zero—in the three scenic Himalayan villages whose lands the HSV wants—people are angry at the "lack of transparency about the project". Following a public interest petition filed by Manali resident Sanjeev Sharman in August 2007, the state government had constituted a high-level committee to review the project and hear the grievances of the people. Says Anokhe Ram, pradhan of Burua panchayat, "No one has bothered to tell us what is in the MoU and the project report and how it will affect our lives. We are worried that our grazing rights and water sources in the higher reaches will be affected. Twice, the government has cancelled the public hearing which was to be conducted by the high-level committee."

The Jan Jagaran Manch (JJM), the local NGO which had objected to the HSV through a petition in the Shimla High Court, has also been writing to the state government for copies of the key agreements signed with the HSV, but the government has refused to hand them over on the ground that it will violate the confidentiality of a commercial deal. Says Lal Chand Katoch, JJM president, "In the absence of these documents, the holding of a public hearing by the government will be meaningless."

A few panchayats too have passed resolutions against the project. Undeterred, the HSV management is busy building a constituency for itself by wooing the villagers. In April 2007, it took 40-odd amateur skiers from these three villages on a month-long junket to Finland, where they were exposed to Alpine and Nordic skiing and taken on a guided tour of some ski resorts. The HSV, through its property agent, has also got villagers to sign 'agreements to sell' for about 45 acres of land, and proposes to get the land registered once it gets final approval from the state government.

With a BJP government in the saddle in HP, Sims (called Abhirama Das in Hare Krishna circles) knows that his best bet is to sell the ski village as a religio-tourism venture. A few months ago, he also met Jagannath Sharma, then chief of RSS's HP unit, in Kullu and told him about his plans to build a grand temple within the HSV project area. Sims' association with religion-based property development ventures in India is by no means recent. He was, for 12 years, the MD of the design team of the stalled $250-million Mayapur Religious city project at the ISKCON headquarter in Mayapur near Calcutta. They proposed to build the world's biggest Hindu temple there, along with a Vedic planetarium, but the project ran afoul of the West Bengal government. He is also a trustee of the Braj Foundation, which aims to develop the region around Mathura associated with Radha-Krishna legends.

Back in Manali, Sims claims he has mapped the entire metaphysical and spiritual landscape of the Kullu valley and integrated spiritual landmarks like temples and other holy places into HSV. Given his recent overtures to the RSS, Sims seems all set to project HSV as his contribution to the cause of Hindutva. Will the gods relent this time around?

By Chander Suta Dogra in Manali with Dola Mitra in Calcutta