NEW DELHI: Even if the year 2011 is coming to a close, the unravelling of the scams surrounding the Commonwealth Games 2010 is nowhere close to coming to an end.

Even a year after the Games got over, a Parliamentary Committee "deeply concerned about the controversy" says it is clear that the Information and Broadcasting Ministry seems to be in dilemma about the actual loss on account of broadcasting rights.

What is more, the Standing Committee for Communication and Information Technology notes that neither the I&B Ministry nor Prasar Bharati were aware that SIS Live, United Kingdom, had outsourced the coverage and production to Zoom Communications and this fact came to their notice at "a later stage".

The Standing Committee was also "surprised to note the opinion given by the Law Ministry that the sub-contract was not in violation of the clause which existed between Prasar Bharati and SIS Live."

The Committee also note that "the Ministry have justified the selection process as well as the cost estimates" of the award of work for Production and Coverage facilities for the Games to SIS Live, UK, for Rs 2.46 billion. "The representative of the Ministry informed the Committee that a transparent process was followed in the award of contract and the Ministry was quite satisfied that there was no shortcoming while giving its approval."

"Although the basis for calculating the amount is not known to the Standing Committee, yet it raises a serious question mark about the reasonableness of the rate quoted by the selected firm," the Committee says.

But the Committee says that "the fact remains that the contract which SIS Live got from Prasar Bharati for Rs 2.46 billion was outsourced by the entity to Zoom Communications for Rs 1.77 billion. The High Level Committee constituted by the Government under VK Shunglu has estimated the work below Rs 1 billion."

The Standing Committee has said "the Secretary during the course of oral evidence before the Committee initially stated that the cost was excessive but subsequently justified the cost estimate as the same figure that was arrived at by a Committee constituted by the Ministry."

The Committee has urged the Government for an early decision in the matter. It has noted that the Central Bureau of Investigation (CBI) is conducting an investigation in this regard.
"The Committee desire that the alleged irregularities in the award of work for Production and Coverage facilities may be scrupulously probed by the investigating agency and the report submitted to the Government at the earliest. The recommendations of the Group of Ministers (on the Shunglu Committee report) and the findings of CBI along with the action taken by the Ministry in this regard should be communicated to the Committee."

It has taken note of the fact that the Shunglu Committee report of January 2011 was submitted to the Group of Ministers (GoM) on 24 March 2011, while also noting that Prasar Bharati CEO BS Lalli was suspended and Doordarshan Director-General Aruna Sharma repatriated to her cadre after seeking their explanations, apart from the CBI being permitted to conduct an inquiry.

Prasar Bharati realised gross revenue of Rs 604.8 million through commercial advertisements during the Games held from 3 to 14 October last year.

MUMBAI: Sun TV network, the Maran-owned Southern broadcasting major, saw a steep fall and a rebound in its share price on Monday as the scrip closed 10 per cent up on the BSE.

Triggered by the CBI raids on the Maran family premises in Delhi and Chennai, the shares slumped as much as 16 per cent in the early trade hours. However, the scrip bounced back and ended at Rs 288.15, 10.21 per cent higher to its previous close.

The rebound added Rs 10.52 billion to Sun TV‘s market capitalization. The company‘s market cap stood at Rs 113.55 billion at the end of the day.

On the National Stock Exchange also, Sun TV stock closed at Rs 288, up 9.55 per cent, after seeing an intraday low of Rs 221.20.
 

NEW DELHI: Cineyug Films‘ founder Karim Morani today claimed before a Central Bureau of Investigation Special Court that the investigative agency had failed to establish that the alleged trail of Rs 2 bilion to the DMK-run Kalaignar TV was a bribe in lieu of grant of 2G licence.

Seeking his discharge in the 2G spectrum allocation scam, Morani said he was "‘innocent"‘ and "cannot be a part of the conspiracy. Being a friend to someone is not enough to prosecute anyone."

"It cannot be the case that Rs two billion was paid as quid pro quo for the grant of UAS (2G) licences. If the money was paid as bribe, than it would not have been paid back," senior advocate Siddhartha Luthra, appearing for Morani, told special judge O.P. Saini.

"Just being a shareholder in the company, my client (Morani) cannot be prosecuted. The umbrella of chargesheet filed in the case is not enough to hold my client guilty," he added.

Morani is not a habitual offender nor has he any connection with the telecom business, the counsel argued, adding the presumption cannot form a basis for his (Morani) prosecution.

There is no nexus between the transactions and the alleged favour done for award of licences, he said.

Morani is accused of intentionally aiding and facilitating the transfer of Rs 2 billion from Shahid Usman Balwa-promoted DB Group, an alleged beneficiary of the scam, as bribe to Kalaignar TV.

The first set of charges filed in the case (2 April) had named former communications minister A Raja, eight others and the three telecom companies as co-conspirators. 

The supplementary chargesheet (25 April) named DMK MP Kanimozhi, daughter of former Tamil Nadu chief minister M. Karunanidhi, her close aide and Kalaignar TV managing director Sharad Kumar, Morani and two others.

All the five are accused in the case for allegedly receiving the bribe which was returned after the CBI started quizzing Raja in the case and have been charged under various provisions of the Indian Penal Code and the Prevention of Corruption Act, 1988, including cheating, forgery and criminal conspiracy.

Meanwhile, Morani complained he was in bad health but the jail authorities were not arranging any treatment so he sought a court directive asking the authorities concerned to take him for medical checkup.

Judge Saini directed jail authorities to take him (Morani) for medical checkup at regular intervals of time.