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2G accused Shahid Balwa has roots in Gujarat

Balwa belongs to little-known Chiliya community from north Gujarat.

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    Shahid Usman Balwa, managing director of the Dynamix Balwas Group and India’s youngest billionaire who was arrested by the CBI late on Tuesday night in connection with the 2G scam, belongs to a little-known Gujarati community, the Chiliyas.

    This community hails mainly from the northern Gujarat region of Siddhpur and Palanpur, and is known for its entrepreneurship.  Remember Hotel Royal Balwas, which has metamorphosed into the international brand, Le Meridien? This hotel is run by the Dynamix Balwas Group which is planning another high-profile five-star hotel at Mundra SEZ.

    Sources said these are the known businesses and projects of the group but it would not be surprising if it had a presence in several other hotels and motels in the urban areas of Gujarat. This small close-knit community is known for its business practices which include participating in joint ventures as sleeping partner.

    “Chiliyas are residents mainly of around 20-25 villages around Palanpur, who migrated to urban centres like Ahmedabad, Surat and Mumbai over a century ago for business,” a source in the hospitality industry in Ahmedabad said.  “Most of them are involved in the restaurant and hotel (even motel) business in urban centers and on highways. It is the norm in the community to help a fellow-Chiliya who may want to start a business by investing in it or joining him as a sleeping partner,” the source said.
    Most well-known members of the community in the city are understandable tight-lipped about Balwa’s arrest.

    Collectively, Chiliyas are believed to own at least 40-50 small and medium-sized restaurants and hotels in the city. Some of the most popular restaurants are owned by members of the community.
    “They are non-vegetarian themselves but keeping in mind the sensitivities of the local people, most of their restaurants offer only vegetarian food,” a long-time resident of the city said.

    “About 20 years back, when some of the first Chiliya restaurants started in the city, I remember they gave fierce competition to restaurateurs already in business. They provided good Punjabi dishes at nearly half the cost and with good ambience,” the Ahmedabad resident said.

    The community has both Sunnis and Shias. “All in all, it’s an enterprising community, well-settled financially, fiercely looking after their interests,” another source said.

    “During the 2002 riots, at least 20 of their hotels such as Tulsi Restaurant near Gulbai Tekra and several on SG Road, were burnt down. Following this, several Chilya families migrated to Hyderabad and Mumbai,” the source added.

    The families that left Gujarat were initially involved in the diamond industry. Many took up jobs even as taxi drivers, mainly in Mumbai, and got into the small-time hotel business which eventually grew.  The Balwas had also started with small hotels in Mumbai and eventually diversified into realty and telecom. Intriguingly, most Chilyas will either run a hotel-restaurant business or an operation that has daily cash counter.

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