Posts Tagged ‘Rajesh Unnikrishnan’

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

Times Private Treaties gets a very public airing

11 May 2009

Miracles never cease, and Times Private Treaties (TPT), the investment arm of Bennett, Coleman & Co Ltd (BCCL), publishers of The Times of India group of publications, is suddenly the object of attention with two competing newspapers having chosen Monday, 11 May 2009,to turn their attention on it.

The first story by Shuchi Bansal and B.G. Shirsat in Business Standard, a competitor of The Economic Times, says the total value of Times‘ portfolio of the 240 companies in which it had invested cash in return for advertising has halved from Rs 2,700 crore to Rs 1,350 crore due to the stock market slump.

S. Sivakumar, the CEO and acting CFO of Times Private Treaties, contests the figure and denies the TPT model has collapsed. The total value of the business is closer to Rs 2,000 crore, he says, of which listed companies comprise only a small percentage; the unlisted companies have lost 40 per cent of their value.

Of the Rs 2,000 crore spent by BCCL in picking up stakes in companies in return for advertising, the group had served ads worth Rs 600 crore.

In other words, an inventory of ads worth Rs 1,400 crore is still to be exhausted.

***

The second story datelined 11 May 2009 on Times Private Treaties is served up by the Times‘ main competitor in Bombay, Daily News & Analysis (DNA).

Special correspondent N. Sundaresh Subramanian takes up the ethics issues raised by TPT’s investment in Pyramid Saimira, the company which was barred by India’s stock market regular recently following an alleged forgery involving Rajesh Unnikrishnan, an assistant editor at The Economic Times.

UTI chairman U.K. Sinha is quoted as saying this:

We are not very happy about these [ads-for-equity] deals. This is not a healthy development. This should not happen. The Securities and Exchanges Board of India has all the powers. It should act.

An unnamed “senior marketman” is quoted as saying: “If this is not brazen insider trading, what is?”

DNA, which puts the value of TPT’s portfolio at Rs 4,000 crore, says the story is not about a company’s bad portfolio of shares. “It’s about a toxic business model, whose noxious elements are contaminating the whole stock-market ecosystem.”

(DNA reports that the list of companies in which Bennet, Coleman & Co has a stake has been removed from TPT’s website following the controversy. The Google cache version can be found here.)

Logo: courtesy Times Private Treaties

SUCHETA DALAL: Forget the news, you can’t believe the ads either

SALIL TRIPATHI: The first casualty of a cosy deal is credibility

PAUL BECKETT: Indian media holding Indian democracy ransom

PRATAP BHANU MEHTA: ‘Indian media in deeply murky ethical territory’

The scoreline: Different strokes for different folks

Sucheta Dalal in public row on private treaties

PRADYUMAN MAHESHWARI: April 1 and the joke is on us (and them)

Pyramid Saimira, Tatva & Times Private Treaties

24 April 2009

epaperimages_24042009_jadkdkdk-large1

SHARANYA KANVILKAR writes from Bombay: A nice little question mark hangs over Times Private Treaties, the controversial investment arm of The Times of India group, after India’s stock market regular yesterday barred 230 persons/entities from dealing in the securities market following their “prima facie” involvement in a forgery scam involving Pyramid Saimira Theatre Limited, an entertainment company which owns movie halls.

Pyramid Saimira is a Times Private Treaty (TPT) client—and one of the 230 persons/entities barred is Rajesh Unnikrishnan, an assistant editor of The Economic Times, the business daily published by The Times group.

Those debarred, including the two promoters of the company, were allegedly involved in forging a letter in December last year and passing it off as a letter from the Securities and Exchanges Board of India (SEBI) to manipulate Pyramid Saimira‘s stock, resulting in subtantial losses to investors.

The forged SEBI letter, asked one of the promoters P.S. Saminathan, chairman and managing director of Pyramid Saimira, to make an open offer for an additional 20 per cent stake at a price not less than Rs 250 at a time when the company was quoting around a fourth of that price.

The other promoter Nirmal Kotecha had sold over 15 lakh shares on Monday, December 22, the day some newspapers published a story based on the forged letter.

The Economic Times‘ Unnikrishnan, according to the SEBI order, played a key role  “played a key role in the forgery, dissemination of information and misleading the media to believe its authenticity”, along with Rakesh Sharma, then an executive with the PR firm, Adfactors, who helped circulate the forged SEBI letter to three of his friends in the media.

In 2008, Adfactors and The Times of India group together floated a public relations firm called Tatva, a 67:33 joint venture between the PR firm and the newspaper.

According to SEBI, Rakesh Sharma of Adfactors and Rajesh Unnikrishnan of ET were colleagues at Business Standard.

“These persons/entities prima facie have been found to have played a key role in the forgery, dissemination of the information contained in the forged Sebi letter to the media and misleading the media to believe the authenticity of the information that was circulated to them. They also derived illegal profits,” SEBI said in its 54-page order.

According to the Sebi order, the tower location of the mobile telephones used by Sharma, Kotecha and Unnikrishnan indicated the three met on December 20, around the time when the forged letter was circulated to the media.

Sharma, whose service was terminated by Adfactors on December 23, had in a statement to SEBI which he later retracted, also admitted that Unnikrishnan and he went to Kotecha’s residence to mail the forged letter to “media friends.”

Asked for a comment by Indian Express (which owns Financial Express where Rajesh Unnikrishnan worked earlier), on the involvement of a staffer in the scam, Rahul Joshi, executive editor of The Economic Times, said:

“We have seen the order. We are studying it.”

In an article on the ethics of the private treaties, India’s most famous business investigative journalist Sucheta Dalal, a former Times employee, had quoted from a 2007 letter from Rahul Joshi to his colleagues:

“At ET, we are carving out a separate team to look into the needs of Private Treaty clients. Every large centre will have a senior editorial person to interface with Treaty clients. In turn, the senior edit person will be responsible, along with the existing team, for edit delivery. This team will have regional champions along with one or two reporters for help—but more importantly, they will liaise with REs (Resident Editors) and help in integrating the content into the different sections of the paper. In this way, we will be able to incorporate PT into the editorial mainstream, rather than it looking like a series of press releases appearing in vanilla form in the paper.”

The Private Treaties, in which The Times Group picks up stakes in up and coming companies in return for guaranteed advertising and editorial exposure, has been a contentious affair in the company, and contributed to rumours surrounding the resignation of The Times of India‘s then executive editor Jaideep Bose aka JoJo last April.

The Economic Times carried an ET bureau report of the debarment of Rajesh Unnikrishnan, calling him an “employee” of ET but without referring to his editorial duties.

There was no mention of the scandal in The Times of India.

The Times group’s main competitor in Bombay, DNA, played a key role in unearthing the scam, with DNA Money special correspondent N. Sundaresha Subramanian churning out story after story.

Photo montage: courtesy DNA

Also read: Business journalism or the journalism of business?

Salil Tripathi: The first casualty of a cosy deal is credibility

Supreme Court notice toCNBC-TV18 analyst

Sushma Ramachandran: Corruption in business journalism

Follow

Get every new post delivered to your Inbox.

Join 7,523 other followers

%d bloggers like this: