INCABLENET: PROMOTERS BATTLE IT OUT

A battle for ownership control is waging within leading Indian multi-systems operator, the Hinduja-run InCableNet, which has a subscriber base of 2-3 million. A local daily over the weekend reported that the initial promoters, and current directors, Jagjit Singh Kohli, Yogesh Shah, and Yogesh Radhakrishnan, who had helped the Hindujas put together the cable TV firm had walked out following several disputes. (Assailants in a gangland style murder gunned down the fourth promoter, Ram Punjabi, around six months ago.)

The InCableNet management retaliated by issuing a press release stating that matters had been resolved and that the three directors were still with the company.

However, all is not hunky-dory. There are several issues being disputed. One is the ownership of ATN, the once-on-off-but-now-currently-on music channel. The three partners had acquired ATN, along with other financiers a few months ago. The Hindujas had maintained that they had nothing to do with the deal. In recent times, the channel has recovered and gained leadership position in the music channel sweepstakes and the promoters say the Hindujas want a leg in. Second, there is the issue of how much equity and say the three can have in the InCableNet management. A third company CVO operates a cable TV movie channel nationally. CVO is currently majority-owned by InCableNet and the original founders of the channel, associates of the three promoters, have essentially been marginalised. This has led to some disgruntlement amongst the three promoters. This apart, the three have also helped structure InCableNet's distribution agreements with European music channel MCM and fashion channel Fashion Television, where again there could be a dispute. Reports are that allegations of funds misuse are also being hurled at Shah, Kohli and Radhakrishnan.

The three promoters have a lot of cachet with the cable TV industry and have structured InCablenet's national operations. The fear in industry is that their departure will probably have implications on InCableNet's existence. Hence, the Hindujas will have to come to some agreement with them.