Osian's Auction Catalogue Creative India Series 1 Bengal | December 2011

Creative India BENGAL | The Artists and Printmakers of the ‘Picturesque’ 13 12 A Note on the Osian’s Art Fund Several reasons contributed to the failure of the Osian’s art Fund to punctually redeem as per its final declared naV (net asset Value), the most critical of which I have not as yet shared with most. That reason was the following: The fact was that many buyers who had promised to buy art at preset prices in 2007-8 (upon which the ongoing naV was based) refused to pay those prices in 2009 when redemption demanded it as by then the prices had fallen by more than 50-60% of the agreed value, but more importantly confidence was at an all-time low and liquidity at an exceptional premium. Further, many of the assumptions that the art would sell at a 20 to 30% discount, compared to earlier sales proved incorrect, as the art would not sell at any price, given a relatively large amount of absolute value was required to be sold. The cash liquidity just did not exist even at a junk value discount. Thereafter, instead of writing down thenaV to approximately 54.65 (which would have been the value if the defaults had been accepted and sales made at whatever price possible), the decision was taken that Osian’s – Connoisseurs of art Private limited (The asset Manager) would cover those defaults so that the Unit Holders did not lose their capital. It was not acceptable to me that people lose their capital, especially in the case of senior citizens. To be left with a feeling that those who had entrusted their wealth to us have lost their capital, irrespective of the market conditions, was not something I could readily endure. Thus Osian’s – Connoisseurs of art requested various banks to lend us the funds to temporarily pay the Unit Holders, thereafter over a period of 3 to 4 years as the art market hopefully regained its stability we would pay off the bank debt. To begin with and after due diligence, a few banks agreed and so upon this promise we kept the naV at 111.72 in December 2009, at which point the first payouts of 85% of the capital were earmarked to be paid to all Unit Holders. We started paying out the Unit Holders with the funds already accumulated according to their Inward Challan number, in anticipation of the promised remaining funds from the bankers within a week or two. nearly three months thereafter the banks refused to lend us the funds. Whether the decision was fuelled by a certain air of negativity generated by media stories, or whether it was a genuinely prudent banking decision is neither here or there. The fact was that suddenly the Fund had promised a payout on 111.72 when in reality funds existed only for a 54.65 naV payout. as the wait increased a few of the Unit Holders started to become frustrated and angry, though the vast majority of the 656 were patient, decent and trusting. The frustration was naturally understandable and so despite lies and libel being circulated in emails I remained silent, because the moral responsibility of one’s promise had to be honored and completed. Then, and now, we have been totally committed to closing the Fund, and whatever the costs, this will happen very soon. naturally resuming auctions is the only way forward to resolve all financial outstanding positions. With time, the experience of all the art Funds will hopefully bring wisdom to the system. It is now clear that art needs a strong supporting infrastructure for it to become a credible capital asset, as with any asset. There is nothing wrong with the art object as an asset itself. Some will say that perhaps the world of business and the world of scholarship and creativity cannot be seamlessly merged. Perhaps lakshmi and Saraswati cannot sit peacefully entwined. Perhaps it is wrong to imagine that building a financially independent arts and culture infrastructure is pivotal for changing India’s economic developmental framework. Perhaps many assumptions of one’s work are mistaken, but then again, perhaps not. Perhaps these crises are part of the collateral damage many of us must endure as India changes her structures, institutions and values to a hopefully much better and fairer platform. We must continue with that conviction, though never forgetting our failures, keeping them close to the heart where they are always capable of hurting and alerting us whilst never losing confidence so that they can equally inspire us to rise again, wiser and nobler. But mostly we must continue to become more capable of implementing intention, for it is all about action in a material world. Retreat and renunciation is the other alternative, which too will be joyous one day, but not yet. Till then, let me humbly say, Osian’s is back, energy galvanized and is ready taking forward the promises and to rebuild better than ever. The Art Market and the Bengal Masters Over the years I have heard many careless, non-evidenced and ignorant statements about the artworks of masters such as nandalal Bose, Hemendranath Mazumdar, Rabindranath Tagore, Jamini Roy and a few other Bengal-based artists from nouveau-riche collectors, even from some artists (in particular students of such masters), and furthermore from the new genre of so-called ‘curators’ who, after handling a few works, writing an essay or two for a museum, start issuing meaningless ‘certificates’ regarding authenticity and declaring fakes with the confidence reserved for a child from their own belly.