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Business Standard

Mumbai Cops Seek Probe Into Seengal Activities


The letter has evoked no response from the regulator so far, according to Mumbai crime branch deputy police commissioner (economic offences) Sanjay Pandey, who wrote the letter.

Suresh Kumar, who has now floated a new company Global Internet Limited, which is set to launch Plus 21, the country's first adult channel, had earlier come out with two public issues for Compact

Disc and Total Exports, raising about Rs 9.20 crore, allegedly without any plant or factory to manufacture the items the companies were supposed to.

When contacted in Chandigarh, Suresh Kumar said that he was just an employee of Global Internet and claimed the company was actually promoted by three non-resident Indians, whose names he refused to divulge.

The Chandigarh-based company has the same address, telephone and fax numbers as Compact Disc and Seengal Hotels, promoted by him.

While the new project profile of the Global Internet does not talk about any public issue plan, an earlier profile of the same company, a copy of which is available with Business Standard, shows it had plans to raise Rs 55.74 crore through public issue and another Rs 3.52 crore through term loans and from other modes. The channel planned earlier was entertainment-oriented covering India, Pakistan, Bhutan, Bangladesh, Sri Lanka and Nepal.

However, the plan to go public was shelved after Sebi called off another public issue by the Seengals, that of the Rs 5.54-crore Seengal Hotels, on September 4, 1995, just a day before the issue was scheduled to open for having concealed a fact on litigation.

In the case of Compact Disc India Ltd, which promised to manufacture and sell compact discs at a low price of Rs 90, the company had claimed to have a plant at Gurgaon.

However, a retired army officer and an ex-employee of the company and the officials of Contour Advertising agency, which had earlier handled two new-issue campaigns for the Seengals, said after visiting the site that there was no plant at Gurgaon to manufacture compact discs.

Suresh Kumar, when questioned about Compact Disc, lost his temper and said, Don't ask me anything about Compact Disc.