Shankar Sharma set to slap Rs 500-cr suit on Centre

Our Markets Bureau

New Delhi, Nov 27: Accusing the government of victimising them for being the angel investor in Tehelka.com, which exposed corruption in defence deals last March, First Global’s Shankar Sharma and his wife Devina Mehra on Tuesday said they would file a case for ‘punitive damages’ worth Rs 400-500 crore against the government some time next week.

The move follows the latest raids by the Enforcement Directorate on their offices and residences of some of their employees on November 24-26.

Mr Sharma said the government’s actions in the twin cases of Tehelka expose and First Global’s alleged involvement in market manipulations earlier this year were an assault not only on Tehelka but also on the freedom of the press.

“The whole thing is nothing but an assault on the free press - a clear message from the government to the media that you criticise us and we will make you pay for it. It is reminiscent of the Emergency and is in the final count an assault on our already beleaguered democracy,” Tehelka editor Tarun Tejpal told the press in the company of Mr Sharma. “Our investors have been suffering at the hands of a slew of government agencies.

This is coupled with the maliciously wild conspiracy theories the government has been levelling against us in the Venkataswami commission in an effort at besmirching its investigation,” said Mr Tejpal.

“Since the government could not find any fault with our journalistic exercise, they were making examples of First Global, thereby making the news portal untouchable for the potent investors,” claimed Mr Tejpal.

Mr Sharma said he had been served with about 200 summons from various government agencies and suffered 25 raids since mid-March. He also alleged that he had been denied of his rights to travel and livelihood besides his assets being attached. “This is even after the Venkatswami commission declared that the tapes are genuine and undoctored and the Sebi being unable to frame charges against him till date.”

Mr Sharma accused the finance ministry and its agencies — Securities and Exchange Board of India (Sebi), Incom Tax department, Enforcement Directorate and department of company affairs — of harassing him even as they had not been able to frame charges against him.

Mr Sharma said major problem started when the Operation West End exposed corruption in the government as his firm held just 14.5 per cent stake in Buffalo Networks, the holding company of Tehelka.
Defending the company, he said First Global was the first Asian company (outside Japan) to get a listed on the London Stock Exchange, and also became member of the Nasdaq in this July. He also claimed that he and his wife were among the top 25 income tax payers in the country.

“In a shameful and draconian campaign, the government through a slew of agencies (virtually all under ministry of finance) has, for the last seven months, launched a witch-hunt against First Global only because we are the angel investors in Tehelka,” Mr Sharma said.