New Delhi:
The broadcast rights deal for the Commonwealth Games, worth Rs 246 crore, is being thoroughly investigated now, sources say.
BS Lalli, the CEO of Prasar Bharti, which oversaw the deal, says no rules were violated to favour SIS Live, a UK-based company that won the rights.
(Watch: Everything is above board says Prasar Bharti CEO) The Managing Director of SIS Live, David Meynell, in a official statement denied all the charges of wrongdoing.
(Read: The SIS response)But there are now questions over whether SIS won its contract through a fair and transparent process. Investigating officials say the company's tax registration formalities have been found to be incomplete and there are discrepancies in banking and other documents. Officials also say they've discovered that SIS subcontracted its deal to Zoom Communications, a company whose offices it shares in Delhi.
SIS dealt with the Prasar Bharti which is an autonomous corporation of the Ministry of Information and Broadcasting. It governs both Doordarshan and All India Radio.
Dordarshan issued this statement today: "The selection of entity has been done after adopting due transparent process and approval of competent authorities... SIS Live is a partnership formed under English law by SIS and its subsidiary SIS Outside Broadcasts Limited in order to provide outside broadcasting services. The firm was a consortium at the time of bidding and later with proper legal advice they were permitted to become a 'Partnership Firm' before contract."
(Read: Doordarshan's response)SERVICE TAX PROBLEM: "I told them to be more careful," says LalliSpeaking to NDTV, Prasar Bharti CEO BS Lalli denied any impropriety in either awarding the contract to or paying SIS. "Whatever has been done has been done in totally proper correct and valid manner," he said.
"It is Incorrect to state that anybody in the organization said that the payment should not be released. There is an apex group - made up of senior officers in corporation - I am chairman of that group - that group took decisions. For the release of payment, there was a direction given by Finance Wing to senior general manager that while the payment is released, an amount on account of service tax liability be withheld. When this matter went to DG of Doordarshan, she sought my intervention and stated that she would like amount be withheld at last stage of payment because payment is not made in one go. I saw the DG's noting and the finance official's noting to DG, and said it is not for us to interfere in matter of service tax, but because we are keen that no liability come on us, I said if at all there is need for it, we could do it in October after the Games (last payment was due in November)."
When asked about the questionable legal status of the firm, Lalli said that it was he who noticed a problem with service tax number. He said that he then told officials "they should have been more careful." Lalli also stressed "I am told they do now have valid service tax number. Any other queries on this should be addressed to service tax department."
Lalli said that the contract with SIS was signed in March 2010 with the consent and supervision of the Ministry of Information and Broadcasting.