Media houses, both print and electronic, may attract heavy financial penalty and other stringent actions if found indulging in or encouraging ?paid news? in the guise of news. Also, the government may discontinue its advertisements through the Directorate of Advertising and Visual Publicity (DAVP) to such print media houses.

These are among the measures and options currently being deliberated within the government on the growing menace of paid news disguised as news in the media, government sources said.

While the Press Council of India (PCI) and the Editor?s Guild are looking into the matter for print publications, the information and broadcasting ministry (I&B) will seek the participation of news broadcasters and the Indian Broadcasting Foundation on the paid news issue soon.

The financial penalty imposed on media houses promoting paid news may be linked to a certain percentage of the annual turnover of media houses, similar to powers vested in the Competition Commission of India for regulating anti-competitive agreements, sources indicated.

Paid news, according to the I&B ministry, is essentially advertisement disguised as news content. These include publishing or broadcasting news items in favour of certain individuals, organisations, political leaders and corporate entities. According to reports, paid news has become a Rs 1,000 crore-plus business in some southern states, including Andhra Pradesh.

The matter is being looked into by the ministry after the emergence of media reports that said certain print and electronic media houses received monetary considerations for publishing or broadcasting news items.

?The Press Council of India is already looking into the matter. The proposal to give teeth to PCI is also under the government?s consideration. However, imposing financial penalty linked to the turnover of media firms could act as a serious deterrent for those who promote paid news,? a senior government official said.

However, the challenge before the government is how to establish which news is paid for, and therefore qualifies as an advertisement, and which is real news, the official indicated.

The matter was also raised by some opposition parties in the Upper House of Parliament. Responding to the ?calling attention notice? on the matter, Ambika Soni, I&B minister, said her ministry will place a detailed report on the matter before Parliament after the sub-committee formed by the Press Council of India submits its findings on the subject.

?The phenomenon of paid news is a serious matter as it influences the functioning of a free press,? Soni said. According to the minister, the matter has also been raised vigorously by the Editors Guild of India last December.