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Friday, April 9, 1999

Stracom takes Prasar Bharati to court 

OUR CORPORATE BUREAU  
NEW DELHI, April 8: The consortium of cricket World Cup air-time sellers on Thursday filed a case against Prasar Bharati in the Delhi high court for alleged breach of contract.

Sources told The Financial Express that the consortium comprising Stracon India, UTV and Creative Eye, has alleged that Prasar Bharati violated the terms of the contract by dropping curtain-raiser programmes and commercials of the World Cup. The first hearing of the case is slated for April 15.

The consortium has alleged that Doordarshan was to carry a film on Sachin Tendulkar, costing Rs 35 lakh, besides commercials. It alleged that DD stopped airing these commercials since the last three-four days.

Sources said the consortium bid for the rights to telecast the World Cup in India to be telecast on Doordarshan as per the consortium's agreement with Prasar Bharati. The agreement is on a 50:50 revenue sharing basis.

Technically, the telecasting rights for the event belong to the consortium and Prasar Bharati has no right tochoose the air-time sellers.

On Prasar Bharati's move to include Nimbus in the consortium, sources said that Nimbus was offered the event by Prasar Bharati in November last year which was declined by the company. Also as Nimbus failed to contribute Rs 40 crore as payment to Prasar Bharati it cannot be made part of the consortium, they added.

Significantly, Nimbus is also a defaulter to Doordarshan. According to the contract, any defaulting company is to be dropped from the consortium.

Further, as a concession to Prasar Bharati the consortium has already hiked the minimum payment guarantee from the proposed Rs 26 crore to Rs 53 crore. The consortium has also given an undertaking for Rs 35 crore.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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