A few questions Sinha should ask Sahara

In my growing-up years, Doordarshan's Chennai Tholaikaatchi Nilayam (broadcasting station) used to occasionally come up with a programme called Evargal Sandhithal. Translated literally, it would be "What if they met?" Actors played mythological characters, usually from different epics and, therefore, did not actually meet. Thus, there would be an imaginary meeting between Ravana (of Ramayan) and Dhuryodhana (of Mahabharat), or say between Krishna and Hanuman, and so on. The idea was to usually tickle as well as prod one to understand why different characters played their part the way they did and what could have happened if they had done things differently.

With the advent of satellite TV, mega-serials and news TV, which is even more entertaining than the entertainment channels, DD programmes have aged and passed away. However, the Sahara group's latest offer to the Sebi chairman for a live TV debate has spurred my hopes. Though some journalists seem to think that the Sebi chief is unlikely to accept such invitations, I feel he should.

Here's my script for UK Sinha's Evargal Santhithal with the angry Sahara chief:

1. What is the business model of the Sahara group of companies? If money is raised from different investors, it has to be deployed in some businesses or should be lent to other businesses, which are making money to earn returns for investors. Have you built any factory, industry or any other productive enterprise? Where are these returns made from?

2. You entered airlines. You shut it down. You entered real estate. Not many projects have come up. Investors have filed cases on delay in delivery of projects in several cities. Now, you are entering retail when many experienced players have already burnt their fingers. Formula One won't make money till an Indian wins grand prix and Karthikeyan is already too old. Does the group have any long-term vision and strategy or do its moves depend on regulatory actions?

3. What is the cost of the capital raised by the Pariwar? If one assumes even a 15 per cent commission to agents and another 15 per cent annualised returns to the investor, the cost is humungous. How do you cover these costs?

4. Even a small hike of, say, 25 basis points by the Reserve Bank of India, scuttles the share prices of banks and rate-sensitive sectors because investors feel the hike would hit investors. How is Sahara not affected by the interest rate hikes and cuts in the economy as it is able to keep rates constant?

5. How are you able to generously fund sportspersons and get into multi-crore sponsorship deals with BCCI, having raised such huge sums of money at such huge cost? What is the cumulative cost/return on such sponsorship deals?

6. What part of the budget for parties thrown and advertisements given to publicise these parties were borne by the poor investors, who often are caught by your agents when roaming around on "highways"?

7. Do you think if people come to the parties you throw and have fun, they approve of everything you do?

Sahara should keep repeating all along that Sinha should first show him those 'robots'.