DD defaulter got contract from Mahajan son’s firm

Mahajan was the Information and Broadcasting Minister when Rahul’s company, Integral Productions, bagged the contract for a sponsored programme Truk Dhina Dhin.

Documents with the police show that they sub-contracted the programme to another production house, Stellar Communication which, along with two other companies, violated Prasar Bharti’s financial norms and obtained bank guarantees from an unstable bank, now gone into liquidation.

Delhi Police filed an FIR in December 2001 and dispatched a notice to former Prasar Bharti chief R R Shah during whose tenure the three contracts were signed.

Western Cooperative Bank’s Mumbai-based managing director was arrested three months ago and several others are on the Delhi Police wanted list.

Among the documents recovered by the Economic Offences wing of the Delhi Police was a letter from Integral Productions to Prasar Bharti on September 4, 1999, informing them that another company was being designated to handle the contract.

Signed by director Irfan Khan, the letter reads: ‘‘We authorise Stellar Communication to place bank guarantees and complete other formalities for our programme Truk Dhina Dhin…’’

The advertising agreement contracts for the programme in Doordarshan’s files are also in the name of Intergral Productions.

Rahul Mahajan, contacted in Mumbai, claimed he was no longer linked with Integral Productions.

‘‘For a year or two I have had nothing to do with the company. I will speak to other people and inform you about the precise details. I am not aware of these facts,’’ he said.

Pramod Mahajan agreed that his son was running Integral Productions along with Irfan Khan but pointed out that the buisness was floated before he became minister.

‘‘There’s nothing irregular that has been done. In fact, after the press started writing all this, I called him and asked him to settle all his dues with the Government. He hardly made any profit from this particular contract.’’

In fact, a month before the Delhi Police came into the picture, Anil Baijal, the then Prasar Bharti CEO, wrote to the Finance Ministry informing them about unstable cooperative banks being allowed to stand guarantee for film producers.

Baijal told The Indian Express: ‘‘I was going hammer and tongs trying to collect Doordarshan dues when I learnt about this fraud. I had suggested that a criminal complaint be lodged.’’

On April 23 last year, Doordarshan amended its regulations. An internal circular (also with the police) informed officials how Doordarshan’s interests needed to be ‘‘safeguarded’’ and henceforth guarantees of only nationalised banks or those banks ‘‘which have a high reputation for their credibility and creditworthiness’’ would be accepted.

Stellar Communication owes a total of Rs 91 lakhs to Prasar Bharti and first got the bank guarantees from the Western Cooperative Bank. Besides them, the other two companies involved are Madhav Poly Producer Trading Pvt Ltd and Maya Entertainment.

It transpires that these companies managed to secure guarantees totalling almost Rs 14 crore despite the fact that the credit-worthiness of the bank was only Rs 60 lakh.

Investigations showed that no surety or mortgage was obtained or a formal agreement signed before the guarantees were presented to Prasar Bharti. Sources said the files of the three companies were cleared in record speed by the top bosses of Mandi House.

Delhi Police officers said that besides the criminal intent of the board of the bank, the collusion of Prasar Bharti officials was evident.

Dinesh Bhatt, the Deputy Commissioner handling the case, said the commissions and ommissions of the Westeren Cooperative Bank and Prasar Bharti were both under the scanner.

‘‘The fraudulent intention of bank officials and collusion of Prasar Bharti officials is apparent. If the issue of sub-contracting of programmes has emerged in evidence, that will also be examined at a later stage and if required, persons examined,’’ he said.