The curtain seems to be closing on the beleaguered Tehelka magazine as 35 employees of the company were handed pink slips on Thursday. Most of them were in the circulation department. It’s not sure how the magazine would send copies to subscribers.

A source in Tehelka said the decision was communicated by the publisher, Nina Tejpal, to the employees through an email. K D Singh, the majority stakeholder, denied any knowledge of the sacking.

The magazine, known for its investigative journalism, has been courting trouble since the founder-editor, Tarun Tejpal, was accused of sexual assault by a staffer. Tejpal has since resigned.

The magazine’s trouble are set to increase as Singh planns to exit the business. Singh, a Member of Parliament from West Bengal Chief Minister Mamta Banerjee’s Trinamool Congress, is on the search for buyers for his 36 per cent in the newsmagazine. Singh, however, is struggling as there are not enough takers for his stake.

“We have been in the process of diluting stakes in the last two years and we are on the lookout. But there are no buyers as of now,” Singh told Business Standard. He said he was awaiting clarity in the case of alleged sexual assault by the former editor.

According to last available Ministry of Corporate Affairs filings, Singh controls 65 per cent of the shareholding in Anant Media, which owns Tehelka, through a company called Royal Building and Infrastructure. He had last year sold 20 per cent of his stake.

Singh clarified he was not calling for a board meeting, as he was not clear of what direction he should take. “We also thought Tehelka was a good investment call.”