Some Delhi artists complain of bounced checks and artwork that hasn’t been returned for months
Maitreyee Handique
New Delhi
Fri, May 11 2007
Fri, May 11 2007
The owner of Copal Art gallery, Ajay Seth, who claimed he had raised Rs20 crore from investors for two art funds last year, faces allegations of financial misrepresentation over non-payment for art and multiple cases of bounced cheques.
These accusations against Seth come from several artists and other galleries, raising several troubling questions about the entrepreneur-turned-art-fund manager.
Seth had claimed to pioneer a new type of art fund where investors pooled in money and bought artworks at discounted prices, with specific works actually handed over to individual investors to take home. Seth has also said he is raising a third fund, worth Rs150 crore.
While the amounts involved in these new disputes are relatively small, they come from a variety of unrelated people. The questions about Seth are also coming at a time when more and more concerns are being raised about the lack of regulations in the booming art investment sector in India.
While there is no evidence that one fund owner’s problems are symptomatic of a widespread malaise in Indian art funds, which total about Rs250 crore across at least five separate funds, the “art as investment” business in the country has recently come under serious regulatory and government scrutiny amid questions about valuations and use of cash for such transactions.
Last month, Indian tax authorities raided several galleries, gallery owners and art fund managers, including Copal Art, seeking records of transactions and lists of buyers.
The latest allegations about Seth come after a front-page story in Mint on 23 April that pointed to significant inconsistencies between his statements—about art works that the fund said it had acquired and artists who the fund claimed were involved with the fund—and the statements of the artists themselves, several of whom denied actual involvement with the fund.
Now, several artists, many of whom are trying to make a mark in a very competitive field, told Mint that Seth has not paid them for their works, which include both paintings and sculptures. At least two artists and a Delhi gallery said cheques, written by Seth, have bounced and their attempts to talk to him have often been unsuccessful.
A local bank also confirmed that Seth had issued at least four cheques that were turned down for lack of sufficient funds in his account.
When asked about these complaints, Seth initially said, “If you progress, you have enemies.” “Why don’t the artists whose cheques have bounced come forward?” he asked. On Thursday, Seth was repeatedly contacted by Mint to respond to the other allegations.
He said he was in meetings and couldn’t talk. Meanwhile, some of the artists who had complained to Mint said Seth has called them to promise that he will buy their works and pay back dues.
These accusations against Seth come from several artists and other galleries, raising several troubling questions about the entrepreneur-turned-art-fund manager.
Seth had claimed to pioneer a new type of art fund where investors pooled in money and bought artworks at discounted prices, with specific works actually handed over to individual investors to take home. Seth has also said he is raising a third fund, worth Rs150 crore.
While the amounts involved in these new disputes are relatively small, they come from a variety of unrelated people. The questions about Seth are also coming at a time when more and more concerns are being raised about the lack of regulations in the booming art investment sector in India.
While there is no evidence that one fund owner’s problems are symptomatic of a widespread malaise in Indian art funds, which total about Rs250 crore across at least five separate funds, the “art as investment” business in the country has recently come under serious regulatory and government scrutiny amid questions about valuations and use of cash for such transactions.
Last month, Indian tax authorities raided several galleries, gallery owners and art fund managers, including Copal Art, seeking records of transactions and lists of buyers.
The latest allegations about Seth come after a front-page story in Mint on 23 April that pointed to significant inconsistencies between his statements—about art works that the fund said it had acquired and artists who the fund claimed were involved with the fund—and the statements of the artists themselves, several of whom denied actual involvement with the fund.
Now, several artists, many of whom are trying to make a mark in a very competitive field, told Mint that Seth has not paid them for their works, which include both paintings and sculptures. At least two artists and a Delhi gallery said cheques, written by Seth, have bounced and their attempts to talk to him have often been unsuccessful.
A local bank also confirmed that Seth had issued at least four cheques that were turned down for lack of sufficient funds in his account.
When asked about these complaints, Seth initially said, “If you progress, you have enemies.” “Why don’t the artists whose cheques have bounced come forward?” he asked. On Thursday, Seth was repeatedly contacted by Mint to respond to the other allegations.
He said he was in meetings and couldn’t talk. Meanwhile, some of the artists who had complained to Mint said Seth has called them to promise that he will buy their works and pay back dues.
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