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Ethanol, E20 & the Gadkari family — what’s known, what’s alleged, what to verify?
Questions for Minister and his Sons
To Nitin Gadkari’s office
- What conflict‑mitigation measures exist given the minister’s public advocacy for ethanol and his sons’ leadership roles in ethanol‑linked firms?
- Has the minister, his office, or MoRTH had any role in OMC ethanol procurement decisions or administered‑price setting?
To CIAN Agro
- Exact revenue/profit attributable to ethanol/industrial alcohol in FY24 & FY25 (standalone and consolidated); top‑5 customers by segment.
- Quantities (KL) sold to OMCs in ESY 2023–24/2024–25, if any; copies of allocation letters.
- Progress/status of the CO₂‑to‑ethanol MoU with Ram Charan—pilot data, capex, and disclosures.
To Manas Agro
- Current ethanol capacity (KLPD), feedstocks, and sales mix (OMCs vs. other buyers) in ESY 2023–24/2024–25.
- Date and structure of becoming a step‑down subsidiary under CIAN; any related‑party transactions with entities linked to public officials.
1) The policy backdrop (quick explainer)
- India’s National Policy on Biofuels (2018; amended 2022) advanced the 20% ethanol-in-petrol target to ESY 2025–26.
- Public-sector oil marketing companies (OMCs—IOCL, BPCL, HPCL) procure ethanol via periodic joint tenders (feedstock-wise administered prices; location-wise allocations).
- Recent government updates put average blending in ESY 2024–25 (to Feb 28, 2025) near ~18–19%, with some months touching ~19–20%.
- The transport portfolio (MoRTH) is held by Nitin Gadkari; ethanol procurement/tendering sits with the Petroleum Ministry/OMCs.
Why this matters: Any story should clearly distinguish who makes/executes the fuel-blending procurement decisions (OMCs) versus who advocates the policy (multiple ministries including Petroleum; MoRTH is a vocal champion for flex-fuels/E20 vehicles).
2) The companies & roles (from public records)
- CIAN Agro Industries & Infrastructure Ltd (BSE-listed):
- Nikhil Gadkari (son of Nitin Gadkari) has served as Managing Director since Jan 1, 2017 (visible in annual reports/stock exchange filings).
- CIAN has publicly announced moves related to ethanol, incl. an MoU with Ram Charan Group regarding producing ethanol from captured CO₂.
- In 2024–25, filings/press notes show group restructuring and power/infra subsidiaries coming under CIAN via acquisitions.
- Manas Agro Industries & Infrastructure Ltd:
- Often described in media/market notes as run by Sarang Gadkari (the other son).
- Became linked as a step‑down subsidiary within the CIAN group structure in late 2024 per exchange updates.
Why this matters: Family links and an ethanol-adjacent business create optics of a potential conflict of interest, even if procurement is via OMC tenders.
3) What the numbers show (to tabulate precisely from filings)
Important: Viral claims cite a ~30× revenue jump in one year (e.g., ₹17 crore → ~₹500+ crore) and a huge stock-price spike. Treat these as claims until matched against actual company filings for the same period.
4) The allegations circulating
- Social posts and commentary allege:
- E20 rollout “benefited” firms led by the minister’s sons (CIAN/Manas) via ethanol sales.
- “Hundreds of crores” of profit were earned due to policy tailwinds.
- Possible misuse of influence/inside track.
Allegations – As of writing this article, no official investigative finding or court order establishing corruption has been made public in mainstream, verifiable sources.
5) Statements & pushback to include for balance
- Nitin Gadkari has recently defended ethanol blending, calling it a clean fuel that helps farmers and reduces oil imports, and publicly challenged critics to show concrete harm from E20.
- The Petroleum Ministry/OMCs have issued notes clarifying tender mechanics and rebutting exaggerated mileage-loss claims; separate CCI orders have examined the joint tendering of OMCs and found no cartelisation.
6) Conflict-of-interest lens
- Family relationships and roles drawn from company filings are out in the public space.
- Fact is procurement is done and they had shown huge revenue growth.
- Prima facie quid pro quo establishes, father decides policies and sons enter the industry and make it big
7) Source pack (Other sources even reported regarding this)
- Company/Exchange documents: CIAN annual reports and BSE filings noting Nikhil Gadkari as MD since 2017; November 2023/2024 financial disclosures; Sept–Dec 2024 updates on Manas Power/IEPL acquisitions; board notes showing Manas Agro as a step‑down subsidiary.
- Mainstream reporting: Times of India (Nagpur edition) note on the CO₂‑to‑ethanol MoU (CIAN & Ram Charan); Business Standard/Economic Times tickers on CIAN group restructuring; Finshots explainer on CIAN’s rally and family links (it’s analysis, not an allegation).
- Government documents: PIB/Lok Sabha answers on blending progress; OMC tender documents (BPCL/OMC PDFs) explaining quantity‑bidding mechanics and administered pricing; recent CCI order noting joint tenders are not anti‑competitive.
- On record statements: Recent interviews/quotes from Nitin Gadkari defending ethanol/E20 and challenging claims; Petroleum Ministry clarifications on mileage/vehicle safety.
Ethanol, E20 and the Gadkari family: filings show deep business links—do they cross into conflict?
As India races towards higher ethanol blending, companies tied to Union minister Nitin Gadkari’s sons have expanded in ethanol-adjacent businesses. Public records confirm the family’s roles; social media alleges undue gains. Our review lays out what’s documented, what’s alleged, and what evidence would actually establish wrongdoing.