India’s ambitious push for ethanol blending under the E20 policy aims to reduce fossil fuel dependence and cut emissions. However, the involvement of Union Minister for Road Transport and Highways Nitin Gadkari, along with his family’s businesses CIAN Agro, led by his son Nikhil Gadkari, and Manas Agro, linked to his brother Sarang Gadkari raises serious ethical questions about conflict of interest and the potential misuse of public office. Adding to these concerns is the meteoric rise in CIAN Agro’s share price, which surged from ₹42 in July 2024 to ₹701 by August 28, 2025 a 520.88% gain in just over a year. This article examines the interplay between policy influence, family business interests, and financial performance, assessing whether the situation reflects legitimate growth or unethical profiteering.
 |
| Nitin Gadkari |
CIAN Agro, under the leadership of Nikhil Gadkari, has capitalized on this policy. In January 2024, it signed an MoU with the Chennai-based Ram Charan Group to produce ethanol from distillery byproducts, positioning itself as a leader in sustainable fuel production. Manas Agro, associated with Sarang Gadkari, also operates in the ethanol sector, reportedly supplying ethanol to government channels—though this claim remains unverified. The alignment of these family-linked businesses with a policy heavily promoted by Nitin Gadkari creates a perception of conflict of interest, where public decisions may favor private gains.
A conflict of interest arises when a public official’s decisions could benefit personal or family interests. Gadkari’s influence over fuel and transport policies, combined with his family’s stakes in ethanol production, fuels skepticism. Indian ministers are bound by the Code of Conduct for Ministers, which requires transparency and recusal from decisions involving personal interests. No evidence suggests Gadkari recused himself from ethanol policy decisions. Moreover, the lack of public disclosures about these companies’ government contracts or subsidies undermines trust.
The E20 policy is a national initiative benefiting multiple stakeholders, not just Gadkari’s family. Companies like BCL Industries and Gokul Agro have also thrived in the ethanol market, and the policy’s environmental and economic goals are undeniable. Yet, the Gadkari family’s deep involvement—Nikhil as CIAN Agro’s Managing Director and Sarang’s ties to both CIAN Agro and Manas Agro—creates an appearance of impropriety. The high promoter shareholding in CIAN Agro (67.67%, with 44.33% pledged) and limited transparency about its financial surge further amplify concerns about favoritism.
CIAN Agro’s stock price soared from ₹42 in July 2024 to ₹398 on August 8, 2025, and to ₹701 by August 28, 2025—a 60% jump in just 20 days and a 520.88% gain over a year. This surge coincides with exceptional financial performance. In Q1 FY26 (June 2025), CIAN Agro reported a net profit of ₹52.21 crore, up 52,110% from ₹0.0979 crore in Q1 FY25, and revenue of ₹510.80 crore, a 2,824% increase from ₹17.47 crore. For FY25, annual profit rose 740% to ₹41.16 crore, and sales grew 502.78% to ₹1,029 crore. These figures reflect CIAN Agro’s expansion into ethanol production and its acquisition of Manas Power Ventures, which turned a 270 MW coal-based power project (Ideal Energy Projects) into its subsidiary.
The E20 policy has created a lucrative market for ethanol, with oil marketing companies mandated to procure it for blending. CIAN Agro’s innovation in producing ethanol from CO₂ has aligned well with this demand, boosting investor confidence. Its trailing twelve-month P/E ratio of 13.30–20.05, compared to a sector P/E of 21.20, suggested the stock was undervalued, attracting buyers. However, the rapid 60% surge in just 20 days, an overbought RSI of 88.5, and the Bombay Stock Exchange’s classification of the stock under ASM Stage 4 all signal speculative trading. High trading volumes (53,000 shares on August 29, 2025, vs. a two-week average of 35,000) and a market cap of ₹2,061.30 crore reflect market exuberance.
A claim that Chaitanya Constructions and Builders, linked to Sarang Gadkari, bought 1,87,16,821 shares at ₹20.50 in May 2025—now valued at ₹701, implying a profit of ₹1,275 crore—raises serious concerns about insider trading or preferential deals. However, this transaction remains unverified and contradicts reported share prices (e.g., ₹549.70 on August 20, 2025), making the allegation speculative.
The situation is ethically troubling. The Gadkari family’s stakes in ethanol production, combined with Nitin Gadkari’s policy influence, create a strong perception of nepotism—even if the E20 policy serves national interests. The lack of transparency about CIAN Agro’s contracts and revenue sources, coupled with its rapid financial and stock market success, fuels suspicion of profiteering. While CIAN Agro’s growth aligns with market opportunities, the absence of clear disclosures and Gadkari’s failure to address conflict-of-interest concerns undermine public trust.
CIAN Agro’s share price surge from ₹42 to ₹701 reflects strong financial performance and ethanol policy tailwinds, but speculative trading and ethical concerns cast a shadow. The Gadkari family’s deep involvement in ethanol production, alongside Nitin Gadkari’s policymaking role, creates a perception of conflict of interest that demands greater transparency. The lack of disclosures and unanswered questions about share purchases and revenue sources necessitate further investigation. For investors, CIAN Agro’s volatility warrants caution; for policymakers, ensuring impartiality and public trust is paramount.
