BJP President Nitin Gadkari and Congress leader Virbhadra Singh were at the centre of corruption allegations on Tuesday, causing embarrassment to both the parties.

As details tumbled out of the alleged dubious funding for a company run by Gadkari, Corporate Affairs Minister M. Veerappa Moily has promised a probe.

To add to the discomfiture of the BJP, party MP Ram Jethmalani demanded Gadkari’s resignation, asking him not to seek a second term as party president.

The media have raised questions over the source of funds for Purti Power and Sugar Ltd controlled by Gadkari.

Media reports claim that major investments and large loans to Purti were made by construction firm Ideal Road Builders (IRB) group, which had won contracts between 1995 and 1999, when Gadkari was PWD Minister in Maharashtra.

Gadkari has denied the allegations and offered himself and his companies to any probe.

Moily said the Registrar of Companies will “definitely inquire into it... We have not ordered anything. It is all coming in the newspapers. Since it has come in public domain, we told our Ministry to make some discreet inquiry to find out what exactly is the matter. Are there any violations of Companies Act?”

The Congress had its own quota of problems with Virbhadra Singh, who is top contender for the Chief Minister’s post in Himachal Pradesh, being accused of forgery, money-laundering, bribe-taking and income-tax evasion.

BJP leader Arun Jaitley alleged that Singh had altered his income-tax account books from 2008 onwards to show a forged, backdated contract and a highly inflated income of around Rs 6.5 crore.

Singh, the former Himachal Chief Minister, had recently come under the scanner following allegations that he had received payments from a steel company which had come to light after raids were conducted on the firm in 2010.

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