EXPRESS NEWS SERVICE

NEW DELHI, SEPTEMBER 18: THE Government today came up with documentary evidence, including a SEBI report and telephone transcripts, in a bid to substantiate its allegation that Tehelka’s sting operation was linked to its shareholder Shankar Sharma’s stock market transactions.

This followed an ultimatum last week from Justice Venkataswami Commission directing the Centre either to withdraw the allegation it made in an affidavit on August 30 or provide documents linking the portal’s defence expose to the transactions of Sharma, also a broker.

Since the investigations by various agencies are still on, the Centre initially sought about a month’s time to provide the evidence. But it was forced to submit some of the papers today because of the commission’s ultimatum at the last hearing on September 14.

Appearing for the Government, Attorney General Soli Sorabjee asserted there was no question of withdrawing its allegation, adding it would file more documents once the investigations by SEBI and Income Tax Department were completed. The Centre gave copies of documents on the ongoing investigations to Tehelka’s counsel, who is to reply on the issue tomorrow.

Citing an example of evidence unearthed so far, Sorabjee read out a telephone transcript purportedly of a conversation between London-based broker Vijay Shukla and Sharma hours after Tehelka’s expose on March 13.

Shukla apparently congratulated Sharma for the ‘‘explosion’’ (expose) and asked him about his stake in Buffalo Networks, the company owning Tehelka.

The documents submitted today include a copy of a report regarding the taxability of the alleged share premium in Buffalo Network and a copy of the appraisal report on a search carried out on the offices and residential premises of First Global, Sharma’s stockbroking firm.

The Centre supported Tehelka’s request made at an earlier hearing that Sharma be issued a notice to respond to the allegation that he had used the portal to manipulate the stock market. Justice Venkataswami reserved his orders on the issue for tomorrow.

According to Centre’s affidavit, Sharma bought 6,117 shares of Buffalo Networks at a premium and transferred 2,500, without premium, to Tehelka Editor-in-Chief Tarun Tejpal. It said though Sharma owned 10 per cent of Tehelka equity, he gave 98 per cent of finances.