Investors Are Not the Only Victims of the Alchemist's Folly

It has been reported that an MP of the Trinamool Congress (TMC), Dr. Kanwar Deep Singh (KD Singh) is in trouble with the Securities and Exchange Board of India (SEBI). He, along with his company, Alchemist Group, have been accused of attempting to flee the country. In 2016, the Enforcement Directorate (ED) had been probing Alchemist Infra Realty Ltd. in connection with a ponzi scam pegged at Rs. 1,900 crore. However, it is not only investors who have to worry about losing their money. The Alchemist Group owns three tea gardens around Darjeeling located at Dooteria, Kallej Valley and Peshok, and the workers have not received their wages since 2015.

Read more: Tea Garden Workers Break the Jinx of Identity and Communal Politics 

A 2017 documentary by Activist Canvas called Gold Rush chronicled the plight of the workers in the tea gardens owned by the Alchemist Group. Lower level managerial staff revealed that the group had revenue dues amounting to Rs. 1.4 crore which they had failed to pay. The workers revealed that their wages were pegged at Rs. 90 per day, when the workers demanded a hike, the wages stopped coming. They have no medical facilities in the gardens – which have to be provided by law – and if they request sick leave, they are told to bring a medical certificate. The dilemma is that without money, they cannot go to a doctor and if they cannot go to a doctor, how can they procure a medical certificate? The workers also mentioned that many, who could afford, have left the garden to seek employment elsewhere.

Read more: Employees of Firms Owned by Nirav Modi and Mehul Choksi at Receiving End of PNB Scam

Following the labour demands, in mid-2016, the gardens were sold to another company, the owner is rumoured to be a close aide of KD Singh. This sale has not alleviated the workers' plight.

Read more: Tea Workers’ Strike: Trouble Brewing for the Government of West Bengal

According to KD Singh's Rajya Sabha profile, he is the “Chairman, Emeritus and founder of the Alchemist Group in 1981 (a self-made first-generation entrepreneur who started at the young age of 19 years), after 32 years of hard work the group comprises of 11 companies and employs 10,000 people in various sectors such as food processing, health care (pharmaceuticals), hospitality (hotels & resorts), food and beverages (restaurants chain), tea estates, steel, real estate and infrastructure development; retired from active business and devotes full time to Parliament, political and social causes; supported various philanthropic causes through charity and donations; a visionary, believes in EQ (Emotional Quotient) more that IQ (Intelligence Quotient); has various distinct achievements during his career as an industrialist.”

An interesting note is that in April 2017, he asked a starred question on the codification of labour laws. His question sought clarity on the status and advantages of codifying labour laws. Perhaps, he was worried that the exercise may further encourage the tea garden workers to demand that he follow the law.

According to reports, he is accused of attempting to siphon off $ 100 million through 10 companies to buy a property in Greece. It has been alleged that this was enabled through a new company floated in Cyprus, a known tax haven. This is despite a Calcutta High Court Order directing the company to repay their investors based on the maturity dates of the policies. They were directed to pay back 250 investors a day, from July 2 to July 20, 2018. This would have resulted in 3,750 beneficiaries. However, they have only repaid 382 people.

Read more: Govt Admits 36 Big Scamsters Have Fled India

One question now is whether KD Singh will join the ranks of Vijay Mallya or face the music in India. However, since investors' interests are protected by law, the other question is whether the tea garden workers will ever receive their dues.