The JVG Scandal

A graduate from Kurukshetra University, Sharma began his career as a materials supplier to Swadeshi Polytex in 1979. Between 1985 and 1989, Sharma supplied construction materials and equipment to contractors. In September 1989, Sharma launched his first company JVG Finance. Over the next few years, the company brought over 3000 small firms under its control. Sharma also launched JVG Steels, JVG Departmental Stores, JVG Foods, JVG Petrochemicals and many other companies. In 1992, Sharma acquired San Tosha Resorts and India Cero Oil, an oil extraction unit from the Dalmias in 1993. However, most part of the JVG empire was created largely from public fixed deposits. In the early 1990s, Sharma opened branches of his finance companies in various towns and villages.

The JVG group's turnover increased from Rs 102 crore in 1994-95 to Rs 700 crore in 1995-96. Sharma was a man with strong political connections - he was close to politicians from Bihar and was involved with the Dalit Sena headed by the then railway minister Ram Vilas Paswan. It was reportedly through these connections that he was able to make JVG Department Stores one of the largest suppliers of commodities to the Government of India. Sharma had grand plans for making JVG a Rs 12000 crore empire by 2000. He announced that he would invest over Rs 4000 crore in diverse areas such as power, cement, hotels, steel, textiles and aviation. JVG went ahead with its plans although it came in for a lot of flak in the media...