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Prasar Bharati has seized the `24.6-crore bank guarantee furnished by SIS Live, which was given broadcasting rights for the Commonwealth Games, for default in fulfilling contractual obligations. The move comes despite the possibility of the company going for international arbitration.
“The seized bank guarantee — 10 per cent of the total `246-crore contract granted to the UK-based company — is in addition to the `96 crore of payment (in last two tranches) the public broadcaster owes to the company,” Prasar Bharati officiating CEO Rajiv Takru told The Pioneer.
Prasar Bharati sources said the total sum of `120 crore (`24.6 crore plus `96 crore) would somewhat compensate the loss to the exchequer. According to the Shunglu Committee report, the exchequer lost `135 crore due to granting of contract for the production and broadcasting of Commonwealth Games to SIS Live, which had further sub-contracted the job to Indian company Zoom Telecommunications.
“Prasar Bharati has asked the company to quantify all deliverables — including loss caused to it due to engaging just 23 experts, instead of the 65 promised under the contract, and not properly covering the entire Queen’s Baton Relay. However, SIS Live has not yet done it, so we have decided to seize their bank guarantee. Though the company has the option of international arbitration, Prasar Bharati is not bothered as it is on solid ground,” Takru said.
Though UK High Commission officials had met Information & Broadcasting Minister Ambika Soni, urging her to release payment owed to SIS Live and even approached court, Prasar Bharati decided to seize the guarantee and not release the payment as the company had defaulted in fulfilling the contractual obligation, he added.
Takru explained, “SIS Live had claimed that though it sub-contracted the broadcasting to Zoom, it ensured that broadcast quality of the Common-wealth Games was excellent and so the payment should be made to it.”
“However, Prasar Bharati countered it by comparing it to a person who had taken a ticket for Palace on Wheels but was made to sit on an ordinary train to reach the destination. Though the destination has been reached, there is compromise in quality of service. We pointed this out and asked SIS Live to quantify each of the services so a proper assessment can be made out. However, it has failed to do so till now,” he maintained.
However, Takru failed to justify the delay in taking action against former Doordarshan director general Aruna Sharma, who had been indicted by the Shunglu Committee along with suspended Prasar Bharati CEO BS Lalli for providing undue gain to the two firms.
Takru said that Sharma’s “voluminous reply” to the allegations is being studied. She has argued that she was just the implementing authority and had not taken decisions regarding the contract.
Meanwhile, I&B Ministry sources said they are likely to take a decision on Sharma’s case soon. The CBI is already investigating charges against Lalli under the Indian Penal Code and the Prevention of Corruption Act.
“The seized bank guarantee — 10 per cent of the total `246-crore contract granted to the UK-based company — is in addition to the `96 crore of payment (in last two tranches) the public broadcaster owes to the company,” Prasar Bharati officiating CEO Rajiv Takru told The Pioneer.
Prasar Bharati sources said the total sum of `120 crore (`24.6 crore plus `96 crore) would somewhat compensate the loss to the exchequer. According to the Shunglu Committee report, the exchequer lost `135 crore due to granting of contract for the production and broadcasting of Commonwealth Games to SIS Live, which had further sub-contracted the job to Indian company Zoom Telecommunications.
“Prasar Bharati has asked the company to quantify all deliverables — including loss caused to it due to engaging just 23 experts, instead of the 65 promised under the contract, and not properly covering the entire Queen’s Baton Relay. However, SIS Live has not yet done it, so we have decided to seize their bank guarantee. Though the company has the option of international arbitration, Prasar Bharati is not bothered as it is on solid ground,” Takru said.
Though UK High Commission officials had met Information & Broadcasting Minister Ambika Soni, urging her to release payment owed to SIS Live and even approached court, Prasar Bharati decided to seize the guarantee and not release the payment as the company had defaulted in fulfilling the contractual obligation, he added.
Takru explained, “SIS Live had claimed that though it sub-contracted the broadcasting to Zoom, it ensured that broadcast quality of the Common-wealth Games was excellent and so the payment should be made to it.”
“However, Prasar Bharati countered it by comparing it to a person who had taken a ticket for Palace on Wheels but was made to sit on an ordinary train to reach the destination. Though the destination has been reached, there is compromise in quality of service. We pointed this out and asked SIS Live to quantify each of the services so a proper assessment can be made out. However, it has failed to do so till now,” he maintained.
However, Takru failed to justify the delay in taking action against former Doordarshan director general Aruna Sharma, who had been indicted by the Shunglu Committee along with suspended Prasar Bharati CEO BS Lalli for providing undue gain to the two firms.
Takru said that Sharma’s “voluminous reply” to the allegations is being studied. She has argued that she was just the implementing authority and had not taken decisions regarding the contract.
Meanwhile, I&B Ministry sources said they are likely to take a decision on Sharma’s case soon. The CBI is already investigating charges against Lalli under the Indian Penal Code and the Prevention of Corruption Act.
