Balkrishna, who co-founded and serves as managing director of Patanjali Ayurved, has been identified as a shareholder in all three companies that submitted bids for a tourism initiative in Uttarakhand, as reported by a local news outlet. One of these companies has been awarded the contract.

The winning firm has refuted claims of any misconduct, asserting that linking an investor's passive shareholding to collusion is a misinterpretation.

In December 2022, the Uttarakhand tourism board, under the Bharatiya Janata Party administration, initiated a tender process aimed at enhancing adventure tourism at the George Everest Estate located near Mussoorie.

The government has committed to leasing 142 acres of land, along with amenities such as parking, pathways, a helipad, a café, five wooden huts, an observatory, and two museums for an annual fee of Rs 1 crore. The Uttarakhand Tourism Development Board is responsible for developing these facilities.

According to reports, all three bidding firms shared Balkrishna as a common shareholder, which allegedly breaches the tender regulations.

Balkrishna reportedly owns over 99% of the shares in two of the bidding companies: Prakriti Organics India Private Limited and Bharuwa Agri Science Private Limited. In the third company, Rajas Aerosports and Adventures Private Limited, he initially held a 25.01% stake, which increased to 69.43% after the tender was awarded, as per the news outlet.

Rajas Aerosports and Adventures secured the contract in July 2023.

The two unsuccessful bidders later acquired a 17.43% stake in Rajas Aerosports and Adventures in October 2023.

Additionally, four other companies owned by Balkrishna collectively obtained a 33.25% stake in Rajas Aerosports and Adventures.

The contract awarded to Rajas Aerosports and Adventures contradicts a declaration signed by bidders, which mandates that they confirm they have not acted in concert or colluded with other bidders, nor engaged in any anti-competitive practices.

A spokesperson for Rajas Aerosports and Adventures stated that the company has attracted funding from a diverse range of investors over the years, but all strategic and operational decisions are made solely by its founders and managing director.

They emphasized that it is misleading to equate passive shareholding with collusion and clarified that Rajas Aerosports is not a subsidiary or affiliate of Patanjali.

Amit Lohani, deputy director of the adventure tourism department, remarked that the board estimated the annual rent at Rs 1 crore, responding to concerns about the fairness of price discovery given the common shareholder situation.

He noted that the tender was open to all participants and that it is not uncommon for individuals to have shareholdings in multiple companies.

Colonel Ashvini Pundir, who was the additional chief executive officer of the tourism development board during the tender process, stated that the situation does not constitute collusion, as the companies operate as independent entities.

He added that the board does not conduct background checks on companies and simply awards the tender to the highest bidder, affirming the legality of the winning company.