These are the points we would like to make in response to the article “Premier art houses under I-T scanner” in The Mint on 24 February 2009:

http://www.livemint.com/2009/02/24234446/Premier-art-houses-under-IT-s.html?h=A1

“The allegations made by your source are clearly false and defamatory.

We at Osian’s have never ever even had or facilitated one rupee of 'cash' transactions, and the whole art world knows that fact clearly. It has been our mission to destroy the black economy and build a fully accountable and transparent framework for the arts and culture of India over the last ten years.

The so called 15 crore ‘fake’ purchases you refer to is absolutely incorrect. These transactions were made to Gallery 7, a twenty year old gallery, and his associate art dealer called Rashesh Shah, for purchase of artworks, by artists such as J. Swaminathan, SH Raza, Ramkumar, A. Padamsee, V.S. Gaitonde, Jogen Chowdhury, Atul Dodiya, among others. Like with many galleries and dealers they told us that they would like to directly invoice Osian's from their clients company as they do not own the artwork. Further, we were told that the client will pay them their commission. All transactions were fully paid in cheque and all artworks physically handed over to Osian’s. The IT dept two years later told us that these clients of Gallery 7 and Mr. Shah were not genuine art collectors but ‘benami’ parties. We have never dealt with Gallery 7 and Mr Shah thereafter.

There is no question at all of Osian's creating bogus turnover or synchronized trading to rig up prices. It is totally against our ethos and the very reason for why we exist. Naturally, there are many people who bought art for investment and hence re-selling is part of the process. That is absolutely normal.

Regarding the investors in the Osian’s Art Fund, every investor filled up a detailed form with PAN and bank account details, bank references and all legal requirements. Every document was given to the authorities, every payment was in full cheque. Your claim is absolutely not true. The success of the Osian’s Art Fund has naturally made many upset. Many fear that art funds will soon become public platforms, and so help further destroy the black economy. At the same time, the levels of disclosure set by the Osian’s Art Fund make us easy targets.

To fight the corruption and improve the system with integrity requires guts. At present the atmosphere has become such that the more honest and upright you are the greater the backlash. We have come to accept this process. However criticizing the system is not in Osian’s nature, we are here to build an alternative, create a new framework, and accept the consequences of that journey.

India still has the world’s largest black economy for antiquities, the largest material cultural heritage in the world and still not even 1% of it exists legally on paper. Most of our laws pertaining to antiquities and art treasures were drafted during the paranoia of the Emergency. That has to fundamentally change. To change this framework is not easy. From importing our art back into India to valuation and authenticity issues, these are burdens which the government machinery cannot handle without genuine private sector involvement, and yet the private-public partnership, despite some positive examples, is still rooted in lack of mutual respect.

Naturally, any private organization which will try to take on changing this system will be under constant attack. A new knowledge-base and full flow of information must be at the root of financial benchmarking in art. Hence Osian’s work has focused on archiving, public auctions, publications, exhibitions, festivals and art funds. These are all platforms to open and rebuild the system.

Accusations based on 1% fact and 99% distortion, have become the norm. Many machines, public and private, now thrive on passing half baked truths to destroy reputations. The success of the corrupt system is when it breaks the leader who wishes for change. Thus a constant conflict is inevitable until this framework evolves into something of pride for all of us.

Neville Tuli, Chairman – Osian’s.”