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Danny Gaekwad faces bureaucratic hurdles in $700M India deal
Moving funds has been a logistical nightmare, the Indian American investor says.
Danny Gaekwad. / Danny Gaekwad
Washington, Feb. 11 (5WH) – Florida-based Indian American businessman Danny Gaekwad has expressed deep frustration over bureaucratic challenges in India, which are delaying his $700 million investment to acquire financial services company Religare.
"PM Narendra Modi is inviting investors, and I’m ready. But the British Raj-era bureaucracy is blocking the way with endless processes," Gaekwad told 5WH in an exclusive interview. To buy total 26 percent of Religare share Gaekwad offered at Rs 275 vs Rs235 offer from Dabur group!! Total deal is north Of USD700 million, he said.
"I went to buy company shares not to fight the Government bureaucracy!!! Bad Bargain," Gaekwad said.
After his offer of ₹275 per share for Religare—higher than the competing bid of ₹235 per share—, he has been directed by the Supreme Court to deposit ₹600 crore by February 12. However, moving funds has been a logistical nightmare, he said.
"I'm scrambling to transfer the money. I have proof of funds, but some banks require RBI clearance and other approvals. I’ve been up since 4 AM trying to work through these hurdles," he said.
Gaekwad and his investment group saw an opportunity in India, inspired by Modi’s push for foreign direct investment (FDI). But the roadblocks have been discouraging. He has raised the issue with the Trump Administration, the White House, and Senator Rick Scott.
"My message to PM Modi—fix the bureaucracy. This is not a favor, it's an investment that benefits India," he said. "Modi is a great cheerleader for India, but his team is dropping the ball."
Gaekwad remains committed to the investment but warns that such hurdles explain why FDI in India remains low. (5WH)
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