Search the Internet          Tips  Sites: Finance, Investment

Govt goes on offensive against Tehelka financiers

In a new twist in the war over Tehelka expose, the government on Thursday went on the offensive accusing the financiers of the news portal of indulging in 'massive scale of operations' in the share market before the arms deal expose leading to its crash and loss of market capitalisation to the tune Rs 1,017 billion.

"Investors confidence in the capital market has shattered and benefits, if any, accruing from operation 'Westend' have been more than out-weighed by the loss inflicted on the economy of the country and resultantly on the economic and social fabric of the country," the government said.

Appearing on behalf of the government before the Venkataswami Commission, probing the allegations of corruption in defence deals, Additional Solicitor General Kirit N Rawal filed an affidavit which alleged that the market crashed as a result of the operations of one Shankar Sharma, owner of First Global Stock Investing, which financed Tehelka's owner, Buffalo Network, and his associates in the aftermath of the expose.

"BSE Sensex fell by 227 points on March 13, 2001 (the day Tehelka tapes were made public and by 604 points in the next 30 days," Rawal said.

Tell us what you think of this report