New Delhi:
The Central Bureau of Investigation (CBI) has registered an FIR against suspended Prasar Bharati CEO BS Lalli today and is conducting raids at his house and office in connection with alleged irregularities in the award of broadcasting rights of the Commonwealth Games. The deal reportedly resulted in a loss of Rs 135 crore to the exchequer.
The CBI is conducting raids at Lalli's house and at his office in Mandi House. It is also raiding the office of Zoom Communications and the residence of its owner, Wasim Dehlvi, in connection with the scam. Zoom Communication is an Indian company named in the CWG broadcast scam.
The move comes after the Information & Broadcasting Ministry cleared the decks for the prosecution of Lalli, who faces allegations of corruption relating to broadcast rights given to UK-based firm SIS Live, which then sub-contracted to Zoom Communication.
Soon after getting clearance from the Prime Minister's Office to initiate action against Lalli on the basis of the recommendations of the VK Shunglu committee, the CBI had written to the I&B Ministry seeking its nod to go ahead with criminal proceedings against him.
Prime Minister Manmohan Singh, after receiving the Shunglu committee report, had directed that explanations be sought from Lalli. Though Lalli denied allegations of any wrongdoing, he was suspended.
The VK Shunglu committee, which went into the alleged financial irregularities in the Commonwealth Games, has strongly indicted Lalli and Doordarshan Director-General Aruna Sharma, accusing them of "collusion" with the UK-based firm. (Read the full report)
The two-member committee, headed by former Comptroller and Auditor General V K Shunglu, also said that based on documents available, it had concluded that the actual cost of the contract awarded to SIS LIVE was at best Rs 111 crore, thus resulting in a profit of at least Rs 135 crore for SIS LIVE and Zoom Communications.
"The responsibility for providing undue benefit to SIS LIVE and Zoom Communications is primarily that of the then CEO, Prasar Bharati and Director General Doordarshan. They cannot be recused from the acts of omission and commission which facilitated this wrong doing," the report said. (
Read the full report)
The committee found that the contract for production and coverage of CWG last year was awarded to SIS LIVE at a cost of Rs 246 crore on the basis of a single bid, as the other nine responses were either rejected or entities backed out due to unduly restrictive and stringent conditions.
The contract was assigned by SIS LIVE to Zoom Communications for Rs 177 crore on the same day on which the contract was signed between Prasar Bharati and SIS LIVE.
"This was in gross violation of tender conditions. SIS LIVE also issued a press release on March 8, 2010 announcing award of a key and exclusive contract for broadcast services, including technical equipment and diversified Production and Coverage services for the 2010 Commonwealth Games in India, to South East Asia's largest broadcast services company, Zoom Communications Ltd India," it said.
Thus, the committee said, what appears to be the case is that SIS LIVE secured the contract for Rs 246 crore; assigned it to Zoom Communications for Rs 177 crore; provided no service and made a profit of the difference between the contracted price and the assigned price, i.e. Rs 69 crore.
Alternatively, the report said, Zoom Communications used SIS LIVE to secure the contract. "Given the complexity, it is idle to speculate which of this is true. Howsoever these transactions are viewed, government overpaid at least Rs 135 crore in a contract of Rs 246 crore," the report said.