Reliance ADA moves HC to claim fees for digitising old Hindi films

The petition filed by Reliance Media Works Limited and Reliance MediaWorks Entertainment on March 24  says that NFAI and NMML had signed a contract with them to digitise and restore at least 987 rare films. According to the petition, a copy of which is with The Indian Express, the companies have alleged that the two government organisations “failed and neglected” to pay over Rs 5.5 crore despite several reminders.

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The firms have, in their plea, have asked the court to direct NMML, NFAI and Union ministry of culture to “jointly or severally” pay Reliance Media Works Limited and Reliance Media Works Entertainment Rs 5.01 crore and Rs 62.25 lakh, respectively, with an interest of 18 per cent per annum.

The official spokesperson of Reliance ADA Group declined comment as the case is sub judice.

The petition says that on March 2, 2014, NMML “acknowledged the outstanding dues” and “assured” the firms that their demands will be placed before its financial committee and executive council.

But that didn’t seem to have worked. In another letter, the Reliance ADA firms said they would initiate legal proceedings as their letters had only fallen on deaf ears and there was no response as to whether they would be paid their dues.

Later, on May 13, 2014, the firms issued a notice to NMML, NFAI and Ministry of Culture asking them to cough up the outstanding dues with interest.

According to the petition, the ministry of culture, in a letter written to the firms, clarified that it did not come into the picture and that the NFAI was the party to the agreement signed between the firms. On the other hand, the petition also mentions that the NMML wrote to the two firms on June 11, 2014, questioning the validity of their agreement.

“Entrustment of work without a formal contract was a decision taken by the previous director and was highly irregular. NMML had appointed a fact-finding committee which has indicted the former director in this regard,” the petition quoted NMML as stating.
Mahesh Rangarajan, director of NMML, declined to comment.

Prakash Magdum, director of NFAI, said he was not aware of the court case. “I have joined only last month. But as per my knowledge, the entire amount, except Rs 2 lakh, was released to the company in December 2014 itself. The remaining amount will be released in the new financial year in April, “Magdum said, adding that Reliance MediaWorks had digitised around 500 films and restored at least 300 of those.

aamir.khan@expressindia.com
khushboo.narayan@expressindia.com