Osian Art Fund’s chief advisor rubbishes talk that phone calls are not answered. Minerva theatre plot deal yet to materialise
Osian Art Fund’s chief advisor Neville Tuli had promised some time ago that he would pay back all his investors by 29th May 2011. However, on account of a prolonged silence on the part of Mr Tuli, speculation was rife among creditors that he had probably left town. Now, it seems that the art fund advisor is in Mumbai, and he says that the process of paying back the money has begun.
Mr Tuli also dismissed talk that calls or emails from his creditors remained unanswered. “There is not one unit holder who has not been personally replied to by my office. Naturally, it is not possible for me to personally answer every call when i am in meetings or out of the office,” he said.
However, many investors allege that they received no response to their calls. With the date for payment approaching and no communication from Mr Tuli, there were rumours that he was being evasive about the payments and that he might have left the city. And the defunct state of Osian’s website (www.osians.com) increased the speculation.
What made matters worse was Osian’s silence on the Minerva property sale. Mr Tuli now says that the deal is yet to materialise. “It (Minerva plot) is still owned and in the possession of Osian’s Connoisseurs of Art Pvt Ltd,” Mr Tuli said.
Osian Art Fund had promised to pay back investors after they threatened legal action. It said that payments would be made as soon as the sale of the Minerva theatre plot in Mumbai was complete. When investors’ calls remained unanswered, rumours began to circulate that the Minerva plot had been sold and that the new owner of the property was in the market to raise money for a redevelopment project.
A retired journalist expects to receive Rs3 million in his capacity as a vendor. He believes it is possible that Mr Tuli is on leave, because he has not received any reply to his emails for almost six months. He is equally pessimistic about the Minerva plot sale. “We also heard rumours that the Minerva property had been sold by him, but he (Mr Tuli) is remains tight-lipped for fear that his creditors will pounce on him—which is happening anyway,” the vendor alleged.
“Unlike investors, vendors do not expect they will not be paid because of a meltdown or whatever. A vendor is selling hard goods and should get his money once the stuff is sold and get back the unsold lot. I gave my books to him to sell and got cheated. In law, the payments proceed first to the employees, then to vendors and then to investors,” the vendor said.
Mr Tuli is yet to pay Rs1.3 million out of some Rs4.6 million due against the sale of an art books library in a New Delhi auction held in July 2008. He hasn’t compensated the vendor for a few precious books that never appeared for auction, despite a written receipt, and neither returned the unsold lot or the film posters that he bought from the vendor’s wife. Add to this the interest accumulated on the total amount.
It’s a similar story in the case of a CEO of a mutual fund company, who has been left in the lurch. In his email to Mr Tuli, he remarked, “I have left at least five messages in the last one year at your office. Your mobile phone which was on a year back, is now switched off or unanswered. Needless to say, at least you had the courtesy to return my calls earlier, which has stopped in the last one year and I am disappointed with the whole affair.”
The last that anyone heard from Mr Tuli was when he replied to Moneylife’s emails and promised unit holders ‘full redemption’ will be done by end of June 2011 (Read, Osian’s new promise: Will pay back by 29th May.)
Investors, on the other hand, are furious by Mr Tuli’s silence and the confusing bits of information circulating about. “I am a lucky person to get 85% of my money back. When I called up the office, I was told that first all investors will be uniformly paid back 85% of their money, and only after that could we expect the balance payments,” remarked Delhi-based investor Sharat Jain.
The communication gap appears to have aggravated the pessimism among Osian’s creditors. It would be in the fund’s own interest to answer investors’ calls.
The company said it is challenging the orders with appropriate authorities and hopes that these demand notices will be revoked as SEZs enjoy tax benefits
New Delhi: Realty major DLF has said the Income Tax (I-T) authorities have slapped additional tax notices for over Rs1,700 crore pertaining to 2008-09 assessment year after being disallowed its profits in special economic zone (SEZ) projects, reports PTI.
The company said it is challenging the orders with appropriate authorities and hopes that these demand notices will be revoked. SEZs enjoy tax benefits.
“Subsequent to the quarter ended 31 March 2011, the company received an assessment order for AY 2008-09 from the Income Tax authorities, creating an additional demand of Rs546.85 crore.
“Out of this Rs487.23 crore pertains to demand on account of disallowance of SEZ profit under section 80IAB of Income Tax Act,” DLF said in a note in its annual result.
“During the year, the group had also received similar demands on account of disallowance of SEZ profits in two of its subsidiaries totalling Rs1,156.19 crore,” it added.
Without naming the subsidiaries, the company said those firms are challenging the orders with appropriate authorities.
“Based on the advice from the independent tax experts, the group is confident that the additional demand so created will not be sustained,” the statement said, adding it has not made any provision for payment of these demands in consolidated financial results.
In 2009, DLF had de-notified four IT/ITeS Special Economic Zones in Gujarat, West Bengal, Orissa and Haryana in the wake of slowdown in office space demand.
Meanwhile, in a different case relating to I-T for the assessment year 2006-07, DLF got a relief of Rs409.60 crore after it had approached CIT (Appeals).
“As per this appeal order, the appellate authority has given significant relief under the various items resulting in reducing the demand from Rs482.74 crore to Rs73.14 crore,” the company said.
DLF said it has further filed an appeal before the ITAT Delhi against the appellate’s order for the remaining Rs73.14 crore.
Man Industries reported over 38% dip in its standalone net profit at Rs18.62 crore for the quarter ended 31 March 2011 due to settlement of Rs109.49 crore for a case lost in the US
Leading pipe manufacturer Man Industries reported over 38% dip in its standalone net profit at Rs18.62 crore for the quarter ended 31 March 2011 due to settlement of Rs109.49 crore for a case lost in the United States of America.
The company had reported a net profit of Rs30.17 crore during the corresponding quarter of 2009-10.
Total income of the company also declined marginally by 5.65% during the quarter at Rs442.13 crore compared to Rs468.62 crore of January-March quarter of FY10, it said in a filing to the Bombay Stock Exchange.
For the full year, the standalone net profit of the company rose by over 37% at Rs91.97 crore, while its total income during the year was Rs1,644.15 crore registering a growth of about 7%, the filing added.
"During the quarter we received Rs55.86 crore towards excise rebate following rejection of Central Excise department's case in Supreme Court. This has been added as income in the results. For full year, the excise rebate was about Rs63.09 crore," Man Industries Chairman RC Mansukhani said over the phone.
He added that however, the company lost a case in United States court in March, which awarded about $23.92 million (Rs109.49 crore) in damages and "this has been written off as liquidated damages, which affected our profitability during the January-March quarter".
Mansukhani also said that the company currently has an order book of about Rs1,500 crore and all of them are under execution.
"Besides this, the company is aiming to secure orders worth Rs1,000 crore during the current fiscal," he said.
Mansukhani also said that there is no fund raising plan for the time being and the focus is on to achieve maximum utilisation from existing capacities.
Asked about the spat with his brother and another promoter of the company, JC Mansukhani (JCM), the Man Industries chairman said that the company Board found him guilty on many counts and decided to remove him as managing director of the company.
Yesterday, the company, in a statement, had listed several charges against JCM like being indulged in activities like insider trading and misappropriation of funds.
Accordingly, JCM was removed from his post and duties on 19th May by the company, the statement had said.
The Man Industries is among the leading manufacturer and exporter of large diameter carbon steel line pipes for various high pressure transmission applications for gas, crude oil, petrochemical products and potable water.
On Wednesday, Man Industries ended 3.83% up at Rs133 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.91%.