Three years ago, the Uttarakhand Tourism Development Board (UTDB) invited bids for an adventure tourism project at George Everest Estate near Mussoorie. The winning bidder was promised 142 acres of developed land, complete with a helipad, parking, wooden huts, a café, two museums, and an observatory, all at an annual concession fee of Rs 1 crore.
Records reviewed in an investigation reveal that all three companies which submitted bids for the project share a common shareholder: the managing director and co-founder of a prominent Rs 6,199-crore consumer goods company, also a long-time associate of a well-known yoga guru.
According to a report made public by The Indian Express, company filings show that this individual holds over 99% stake in two of the bidding firms, and had a 25.01% stake in the third at the time of bidding. Following the award of the tender in July 2023, the shareholding in the winning firm was raised to 69.43%. Here are the other facts published in the news report.
Two of the other bidders subsequently acquired a 17.43% stake in the winning company in October 2023. In addition, four more companies (also controlled by the same individual) jointly acquired a 33.25% stake in the same firm. All six entities involved are directly or indirectly majority-owned by this shareholder.
These developments raise questions about a clause in the tender requiring bidders to certify that they had not acted in collusion or in concert with any other participant. The clause also warns that the UTDB reserves the right to terminate the contract if corrupt or fraudulent practices are found.
A senior official from the tourism department claimed that the Rs 1 crore fee was fair and that the tender had been open to all. It was suggested that common shareholding across companies was not unusual. The official also said the area had generated over Rs 5 crore in GST collections in the past two years, and that the government had opted for a “warden” model over building large-scale homestays, which the winning firm was fulfilling.
A former officer who was closely associated with the project at the time of tendering reportedly defended the process, arguing that the companies were independent legal entities and the award was given to the highest bidder. He added that there was no need for background checks into shareholding beyond what was required under law.
The spokesperson for the winning firm said the company had raised capital from various investors over time, but that all management and strategic decisions were taken solely by its founders and managing director. The spokesperson maintained that passive shareholding could not be equated with collusion.
The George Everest Estate, originally established in 1832, underwent significant redevelopment between 2019 and 2022 under a Rs 23.5 crore programme funded by the Asian Development Bank. The tender for adventure activities such as paragliding, bungee jumping, hot air ballooning, rappelling, rock climbing, helicopter rides, and camping—was floated as part of the Himalayan Darshan programme.
Interestingly, before the tender process, a senior tourism official had, in mid-2022, recommended that the project be assigned to the same firm on a one-year pilot basis to assess viability. However, by December that year, the department opted to issue a 15-year tender, extendable by another 15 years.
The bidding happened in February 2023, the report added. The winning bid offered Rs 1 crore annually. The other two bids stood at Rs 65 lakh and Rs 51 lakh. The annual fee was to increase by 3% each year.
Furthermore, corporate records show that around two and a half months after the letter of award was issued, five companies associated with the same shareholder were added to the winning firm’s shareholder register on October 9, 2023, under Section 88 of the Companies Act. A sixth company was added on January 17, 2024. The shareholder holds over 99% stake in each of these six entities.
The company, incorporated in 2013 by two brothers, did not include the high-profile shareholder at inception, the report claimed. He became a shareholder in 2018. As of March 31, 2023, the company had four shareholders: the aforementioned individual, the founding brothers, and a third partner. Shortly after receiving the project, the shareholder reportedly consolidated his position by bringing in additional entities under his control.
In addition to the George Everest project, the same company was awarded another assignment under the Uttarakhand State Air Connectivity Scheme, a subsidised pilot initiative. This involved operating a helicopter shuttle service between Jolly Grant helipad and George Everest Estate.
The company was exempted from paying landing and parking fees, which are normally charged to private operators, and received government support to cap passenger fares at Rs 2,500.
According to an official associated with the scheme, the government did not charge royalty for operating within the estate, considering it a private venture. Currently, six air routes operate under this scheme, with other companies managing five of them.
Further, it has emerged that in April this year, a top state official handling both tourism and civil aviation at the time, wrote to the Directorate General of Civil Aviation recommending the same firm for operating gyrocopter joyrides across four tourist locations in Uttarakhand.
This recommendation was later clarified by the department’s current leadership as being part of a trial plan, with a new tender floated subsequently. The recommending official no longer oversees tourism but remains in charge of civil aviation.
The current directors of the winning firm are based in Ghaziabad and Haridwar. One holds a 20.68% stake and the other 5.58%. Both were unavailable for comment.
The private secretary to the key shareholder did not respond to repeated queries. A spokesperson for the consumer goods company confirmed a direct connection with the firm that won the project.
Meanwhile, the firm reportedly reiterated that many Indian companies share investors, institutional or individual, but that does not imply operational links or bid-rigging. It claimed it never operated as a subsidiary or affiliate of the consumer goods conglomerate, and that investment alone does not amount to management control.
The spokesperson further told the media house that the project was awarded through a transparent and competitive bidding process and all agreements with government departments followed standard procedures.
For now, it seems all in the realm of conjecture.
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