CWG: SIS continues arbitration proceedings against Prasar Bharati

Submitted by ITV Production on Aug 27
indiantelevision.com Team

NEW INDIA: Arbitration proceedings by British production house SIS Live for recovery of amounts withheld by Prasar Bharati for breach of the contractual provisions relating to coverage of the Commonwealth Games in 2010 are still continuing.

Prasar Bharati had encashed the bank guarantee amounting to Rs 246 million and withheld a sum of Rs 70.80 million against services provided for Rights Holding Broadcasters.

Prasar Bharati has also withheld a sum of Rs 984 million (40 per cent of the contract value of the contract awarded to SIS Live for Rs 2.46 billion) on account of various disputes.

Information and Broadcasting Ministry sources told indiantelevision.com that the arbitral proceedings are still going on. The arbitration has been invoked by SIS Live under clause 8.2 of the contract with Prasar Bharati.

SIS Live had recently expressed relief recently at the reported move by the Central Bureau of Investigation to seek closure of the investigation against award to it of coverage of the Commonwealth Games.

The High Level V K Shunglu Committee had concluded that SIS Live that were estimated at below Rs One billion, but Prasar Bharati had already paid Rs 1.476 billion up to October 2010.

Interestingly even as the CBI had begun its investigation, the Central Vigilance Officer of Prasar Bharati had also commenced investigations. Following an objection by CBI that these would interfere with the investigating agency?s work, the Ministry directed the CVO to stop investigation on all sixteen issues listed by the Shunglu Committee except one which related to customisation of services, on which the CVO has already submitted a report.

The Ministry had in March last year cleared action in the matter of irregularities of award of contract to SIS Live by then Prasar Bharati Chief Executive Officer Baljit Singh Lalli (who was later suspended on corruption charges in other cases).

It had been stated that the award of broadcasting rights of Commonwealth Games reportedly resulting in loss of Rs 1.35 million. The Shunglu Committee in its report said ?undue benefits? were provided to SIS Live and Zoom Communications.

Lalli along with former Doordarshan Director-General Aruna Sharma were named by the V K Shunglu Committee in the first of its reports to the Commonwealth Games held in the Capital in October 2010.

No sanction was given for prosecution of Sharma in view of an explanation given by her earlier and another detailed note sought from her by the Ministry. It is learnt that she has been asked to submit the note within one week. Sharma had later been reverted to her home state Madhya Pradesh following completion of her term in Doordarshan.

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 Prasar Bharati