No, it was not the money that I valued —what I wanted was to make all this mob of Heintzes, hotel proprietors, and fine ladies of Baden talk about me, recount my story, wonder at me, extol my doings, and worship my winnings.”
–Fyodor Dostoevsky in The Gambler
Ready for the Gamble
Yet, when he broke into the art scene, Tuli was virtually unheard of. “There was a striking, slim, young man with a magnificent head of hair, and he kept putting up his paddle at the drop of a hat. He was surrounded by a bevy of young ladies egging him on. We wondered who this young man was. He was simply not known in Bombay,’’ says artist Jehangir Sabavala of Tuli’s early days.
When the Heart Stopped Beating
At a HEART auction in 1999, Tuli put up some old works of art with the assurance that two experts had certified their provenance or the history of their origin and ownership. It was later found that he had never even showed them the works. Given that certified provenance confirms the authenticity and legality of a work and can fetch higher prices, this controversy was a serious one. But Tuli terms the allegations “absolute nonsense and lies” insisting that it was HEART that introduced the concept of provenance in India.
The Cowboy Culture
Art funds look very much like mutual funds but differ in a key detail. Regulation. Stock market regulator SEBI had indeed brought out some recommendations to regulate art funds, but they were never finalised. Art fund managers were free to operate like cowboys.
Net Anxiety Value
That time came in the middle of 2009 when the fund closed, but Tuli failed to keep his promise. Used as they were to fancy NAVs, investors were just about digesting the fall in the market but at least expected to be paid what was due. But for five months, even that didn’t happen. Finally, Osian’s told investors that it would send out cheques in December second week. However, it managed to pay only a few investors, that too only 85 per cent of their principal. Tuli then told the two foreign banks that had referred the fund to their clients that he would not be able to meet the deadline. But he assured them that he would pay.
The Noose Tightens
The ambitious international venture not only sullied Osian’s books, it also landed Tuli in trouble with both Abraaj Capital and international auction house Christie’s. Tuli’s offshore company based in Jersey Isles was acting as the purchasing agent for IAAF and had accordingly signed an agreement with Abraaj in June 2008. The June agreement listed a total loan of about $23.7 million to Bregawn in the previous month. Abraaj has moved a London court to recover that money for which Neville Tuli has also given a personal guarantee.
(This story appears in the 05 February, 2010 issue of Forbes India. To visit our Archives, click here.)
Very biased article. Saddened by the journalism quality here, business is business, tuli was trying to bring India\'s potential as a art powerhouse and his dream went down. its business, dont be so hurtful
on Dec 23, 2013Sanjeev Khandelwal, one of the directors of osian, should be sued by investors and the public. He took out all his money from osian before it crashed and publically told everyone to buy into osian. He cheated his own friends and relatives. He also runs a small pharmaceutical company and pretends to be a venture investor. Anybody doing business with this guy should be aware, he will cheat you and is a big fraud. OSIAN was his scam idea with Neville.
on May 15, 2013I happen to meet one of the employee of Osians and he told me that the company has not paid him salary since last 8 months!! just think a company who is treating it's employees as it's slave and not paying even salaries or can't even afford to pay salaries to its staff, how come will it pay to it's investors??
on Dec 4, 2010I havent yet got a dime back from Osians. Can't understand how they could pay 85% to some of the investors while depriving the others 100% . Is there any legal recourse available ? How bout the glitterati in the board of directors , can they be of any help at all?
on Aug 22, 2010Haven't even received part redemption. I would say investors who have received 85% of the corpus are very lucky indeed. I feel cheated. Can anybody help ?
on Aug 20, 2010We can try to help all the investors from a unite we have made in Delhi , I am also one of the investors and I am also in the same pain as you the only thing I need contact details of all the directors of Osians Art Fund to send them legal notice indidiually and if they do not repond for sure a crimical action will be taken against all the directors ( no one will be spared ) whatever storys they make up
on Apr 25, 2012I am also an investor in Osian Art Fund. Please include me in the fight to recover our hard earned money. I did receive 85% of the corpus more than a year ago. Since then, only promises but noting else. I have retired and need these funds urgently. Thanks.
on Jul 2, 2012As of today, Neville has paid only 85% of the corpus. Remaining 15% and the (meagre) profit is yet to be received, which he and his staff have been promising since December 2009 end. In spite of the Auction held in Mar 2010, he has not yet paid up the investors. He is heard to be sitting on a highly valued art collection but it seems wishes to raise his hands to pay up the investors.
on May 12, 2010For every con man a sucker is born every minute.
on Jan 29, 2010Your quote from Dostoevsky's gambler story is spot on - as a clue to the phenomenon of Neville T... But I feel sad that Osian's dream has gone sour, though yes, knowing Neville personally, I'm not surprised. The picture of Osianama as a project stuck in mud and debris was depressing...
on Feb 11, 2010These adverse developments would further alienate investors from alternative investment instruments
on Mar 1, 2010Since when did Forbes start taking up issues of personal vendetta? Elizabeth i believe was not glorified as a journalist and treated on par with others when she walked into Osians the first time round! is that the reason for the article? i also heard that Osians was aware of the article and Mr. Tuli allowed the article to be printed because he believes in democracy!!! This is business not glorified philosophy we are dealing with!! ups and downs are natural here just as the vultures who swoop down on those who fall! Lets see Forbes' democracy now!
on Mar 11, 2010