Ethanol Scam in India ? Did Nitin Gadkari Push Ethanol Policy for His Sons Profit ?

Ethanol Scam in India ? Did Nitin Gadkari Push Ethanol Policy for His Sons Profit ?

India has been moving fast towards clean energy, and ethanol-blended fuel is one of the biggest reforms in this direction. The government introduced E20 petrol which contains 20% ethanol mixed with petrol with the aim of reducing crude oil imports supporting farmers and cutting down carbon emissions. On the surface, this looks like a progressive and environment-friendly step. But behind this policy lies a growing political storm, with allegations that it was pushed not only for public good but also for the personal benefit of Union Transport Minister Nitin Gadkari’s family.

The ethanol policy was meant to create a win-win situation for the nation. Ethanol is produced from sugarcane and grain-based products, and India, being a large producer of sugarcane, saw this as an opportunity to support farmers and reduce dependence on expensive crude oil imports.

The government directed petrol pumps across the country to sell E20 petrol policy , making ethanol blending compulsory. However, this decision soon came under the scanner when opposition leaders and watchdogs began connecting it with the financial growth of companies linked to Gadkari’s sons.

According to media reports, firms such as CIAN Agro Industries and Infrastructure Ltd., connected to Gadkari’s son Nikhil Gadkari, saw a sharp rise in both revenue and stock value after the nationwide rollout of ethanol blending. In just one year, the company’s revenue reportedly grew from less than twenty crore rupees to more than five hundred crore rupees, while its stock price surged by over two thousand percent.

Opposition leaders, especially from the Congress party alleged that this was not a natural business boom but rather the result of policies designed to benefit certain private companies. They argued that the minister had a conflict of interest and that the ethanol program was implemented in a way that favored his family’s business empire.

The BJP, however, has firmly rejected these claims. Gadkari himself defended the ethanol program as a national mission, not a personal initiative. He explained that ethanol blending was not new, pointing out that it was first introduced during the Vajpayee government and later supported by other administrations as well.

He stressed that the decision to make E20 petrol compulsory was backed by the Prime Minister’s Office, the Ministry of Petroleum, and other key departments, making it a collective policy rather than his individual project. Support also came from farmer leaders like Raju Shetti, who argued that the policy primarily benefits sugarcane farmers by giving them a steady market for their produce and improving rural incomes.

The matter eventually reached the Supreme Court through a public interest litigation filed against the compulsory rollout of E20 petrol  Critics argued that forcing ethanol blended petrol onto consumers was unfair because many older vehicles are not compatible with it, and drivers were left without the option of ethanol-free petrol.

They also called it a policy that unfairly supported certain business groups. On September 1, 2025, the Supreme Court dismissed the petition, upholding the government’s decision. However, the court directed that all petrol pumps must clearly label ethanol content on fuel dispensers so that consumers are fully aware of what they are buying.

Despite the controversy, there is no denying that ethanol blending is essential for India’s future. The country needs alternative fuels to reduce dependence on oil imports and to cut greenhouse gas emissions. Farmers stand to benefit the most as ethanol creates new markets for sugarcane and other crops.

But the timing of the policy rollout, coupled with the sharp financial growth of companies linked to the transport minister’s family has created a cloud of suspicion. While the government calls it a clean energy revolution, critics see it as a well-disguised scam.

The ethanol debate in India is not just about fuel; it is about governance, transparency, and accountability. When leaders and their families are directly linked to industries that benefit from government policies questions of favoritism and conflict of interest are bound to arise.

Even if the policy has genuine national benefits the shadow of personal profit can damage public trust. For India to move forward with clean energy reforms, it must ensure that such policies are implemented with complete transparency, free from any perception of bias. Only then will the people believe that these reforms are truly for the nation, and not for a few powerful families.

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