Archive for April 16th, 2011

Tehelka promoter’s woes just don’t seem to end

16 April 2011

K.D. Singh, the controversial promoter behind Tehelka magazine and its shelved Financial World newspaper project, is once again in the news—for the wrong reasons.

Already under a shadow after allegedly buying his way into Parliament last June, and after being stopped at Delhi airport with Rs 57 lakh cash last month, India Today magazine reports that Singh is now under the scanner of the economic offences wing of the Union home ministry.

Reason #1: Singh’s Alchemist group “may have artificially rigged the share prices” in five companies—Usher Agro, Sel Manufacturing, Dhanus Tech, Pyramid Samira and Resurgere Mines.

Reason #2: The stake picked up by two foreign institutional investors (FIIs)—Mavi and Somerset—with links to banned stock market operator Nirmal Kotecha, in Alchemist realty.

The India Today story, authored by former Tehelka business editor Shantanu Guha Ray, says the stock market regulator SEBI is aware of the charges of share-rigging, and is also probing why two Singh companies, Alchemist Limited and Alchemist Realty, did not make mandatory annual and quarterly account disclosures to the Bombay stock exchange (BSE) and the national stock exchange (NSE).

Kotecha had been banned from trading on the stock market in 2009 in a forgery scam involving Pyramid Saimira. (Rajesh Unnikrishnan, an assistant editor of The Economic Times of The Times of India group, and Tatva, a PR firm involved in a joint venture with the Times group, were also banned.)

Shankar Sharma, an earlier Tehelka promoter, too had run into problems with SEBI, and faced charges of manipulating the market with advance knowledge of Operation Westend, a sting operation that caught the then BJP president Bangaru Laxman with his hand in the piejar.

Photograph: courtesy Alchemist

Also read: Moneybag MP says he didn’t turn off FW tap

Follow

Get every new post delivered to your Inbox.

Join 7,220 other followers

%d bloggers like this: