Neville Tuli, Osian's Connoisseurs declared as defaulters by IDBI Bank

Moneylife Digital Team 11 March 2015

In a newspaper advertisement, IDBI Bank said Tuli and Osian’s Connoisseurs together owe it Rs59.20 crore as on 1st March, and the Bank holds second charge on the offices of the company

IDBI Bank, through an advertisement in a newspaper has declared Neville Tuli, promoter and personal guarantor of Osian's Connoisseurs of Art Pvt Ltd, and the company, a defaulter. The Bank says that it holds second charge of the office premises of the company situated in Nariman Bhawan in Mumbai.

The notice, which includes a photograph of Tuli says, "It is hereby notified to the public at large that the above mentioned borrower failed and neglected to pay the instalments of principal, interest and other monies to IDBI Bank with respect to the financial assistance granted to the borrower. The borrowers are required to pay the outstanding sum or Rs59.20 crore as on 1 March 2015 together with interest thereon till the date of payment in terms of various loan documents executed by them in favour of IDBI Bank."

The Bank also cautioned people against dealing with the property as huge dues are recoverable from Tuli and his company.

The notice is issued by the Bank's NPA Management Group.

Earlier in April 2013, market regulator Securities and Exchange Board of India (SEBI) had asked Osian’s-Connoisseurs, which managed Osian's Art Fund, to wind up its existing collective investment scheme (CIS) and refund the money collected from investors. SEBI also referred the case to the state government and the police for filing a civil or criminal case against Osian's and its promoters, directors and persons in-charge of its CIS. In addition, SEBI had also requested the Ministry of Corporate Affairs (MCA) to initiate proceedings to wind up the Art Fund.

Osian's raised Rs102.40 crore from 656 unit holders across 39 cities, most of them high net-worth individuals (HNIs). The scheme used to declare NAVs showing 30% returns, but when it was time for redemption, the money was not forthcoming. The scheme was wound up on 10 July 2009.

At present, the case is pending before the Securities Appellate Tribunal (SAT).

Meanwhile, in January 2015, Tuli, the chairman of Osian's group launched Osianama - India's Arts, Auto Cine & Culture Centre at the iconic art-deco Liberty Cinema in Mumbai. Osianama also launched its Vintage and Classic Automotive Club, which it claims is a unique initiative to bring the world of automotive 'cultural treasures' to both connoisseurs and students in the form of events, exhibitions, discussions, master classes and seminars.

You may want to read...

Osian’s: SEBI asks the Art Fund to shut shop and refund investors’ money with 10% interest pa

Osian Art Fund failure: Mr Tuli’s version

Osian Art Fund failed to live up to expectations, says Tuli

Comments

User

Mahesh S Bhatt

1 decade ago

Mamu banaya.

Japan had oldest way to defraud in mid 80's by under/over valuing arts & striping accoutnants/governments.

God also cannot bless because underlying fact is greed/cheat instinct legally.

Mahesh

u k saluja

1 decade ago

It would be appreciated if you could kindly publish an article once again about promoters of companies like Micro Technologies India Ltd., Mumbai(Dr.P.Sekhar and Mr.Aditya Sekhar, Chairman and CMD respectively) and Mr.Pankaj Saraiya, MD of Avon Corpn.Ltd., Mumbai who have failed to pay back money to theirmatured FD holders and both the companies have not complied with directives/orders issued by CLB, Mumbai to pay back to their FD holders and have now gone into liquidation. Claims still not processed by liquidator and poor, sick and old, investors are suffering. Kindly bring this to the notice of higher-ups in the MCA and others to help such people. Thanks. U K Saluja, New Delhi.