The Hindu Business Line : Provogue promoter arrested on drug charge

THE high-profile apparel brand Provogue's promoter Mr Salil Chaturvedi was arrested on Tuesday morning by the Mumbai Police in connection with a narcotics case.

He has been arrested under the Narcotic Drugs and Psychotropic Substances (NDPS) Act and will be produced in court on Wednesday, a Narcotics Control Bureau official told Business Line.

The case was registered by the Airport Police against Mr Salil Chaturvedi on February 18, under the NDPS Act, an official with the Airport Police confirmed. Specific details on the charges against Mr Salil Chaturvedi were however not available.

Later in the day, the police also searched Mr Salil Chaturvedi's office and residence, said Ms Shital Chaturvedi, wife of Mr Salil Chaturvedi's elder-brother Mr Nikhil Chaturvedi. She alleged that the police had searched the house and used the bathrooms, following which they had found vials with white powder in the bathroom. She alleged that it had been put there. However, police were not available for comment after the late evening development.

Meanwhile, Mr Akhil Chaturvedi, Director, Provogue (India) Ltd, confirmed that the police had called his brother Mr Salil Chaturvedi for questioning on a drug-related issue and the company was discussing the issue with its legal advisors.

Ms Chaturvedi had also spoken to Mumbai's Police Commissioner Mr A.N. Roy, she said.

Mr Akhil Chaturvedi however pointed out that the matter related to two of the company's ex-employees Mr Vishal Meghnani and Mr Allwyn Sequeira. They had been terminated from service after being found handling drugs after office hours, he said. They had been caught with about 0.3 grams of drugs. He alleged that his brother was being victimised as a result.

Provogue's lounge in Central Mumbai has a star-studded clientele that includes Bollywood celebrities. According to agency reports, the police had interrogated Mr Salil Chaturvedi last month following the arrest of the manager of Provogue Lounge, Mr Vishal Meghnani, on drug charges earlier in July.

Mr Meghnani is alleged to have revealed the role of Mr Salil Chaturvedi in the drugs case, the agency report said, quoting a source. Mr Salil Chaturvedi is the ninth person to be arrested in the drugs case.

Police have been probing the drugs case since late-January, when a Provogue employee Mr Sequeira was arrested under the NDPS Act when he booked a courier that allegedly had cocaine vials for Chennai at the airport.

The Rs 120-crore Provogue had gone in for a listing on the local exchange about two months ago.

Mr Nikhil Garg, Analyst, Edelweiss Capital, said it was unclear whether any volatility in Provogue's stock price could be attributed to the current events. He said it was unlikely business would be affected. But he did not discount the fact that this might unnerve some investors from investing at the moment.

However, the scrip is unlikely to be affected as the retail segment is currently very attractive and Provogue has a good brand presence, Mr Garg said. The stock closed lower at Rs 204.60 from the previous close of Rs 206.30.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page