MCCS fineprint on Star News worries Centre

Officials said: ‘‘The power to veto decisions, editorial control lies with minority stakeholder Star, while on paper Indian shareholders hold 74 per cent. Moreover, the advertising and infrastructure company that shell company Media Content and Communications Services (MCCS) mentions for outsourcing are both 100 per cent Star subsidiaries.’’

They will be relying on the expertise of the Law and Finance secretaries to lay the basis for a note which will be forwarded to the GoM when it meets later. The GoM comprises the Ministers of Finance, Law and Information and Broadcasting.

What is worrying the Ministry is Star’s shell company, MCCS’ admission in its submission of its shareholders agreement, that crucial decisions will be taken only after written consent from Star India Private Limited (Star’s 100 per cent subsidiary). And they are: ‘‘Given the credibility of personnel towards ensuring the maintenance of the quality and standards of the channel, and thereby preserving the value of Star News bound under licence from Star Television Production Ltd (STPL, which is registered in Virgin Islands) the parties have agreed that any appointment, removal, reappointment or replacement of key personnel shall be with STPL’s concurrence.

‘‘It is not unusual for a licensor to require the licensee to make certain changes to preserve the standard broadcasting matter,’’ says MCCS.

The government’s uplinking rules, on the other hand, state that authorities exercising editorial control should be resident Indians. In other words, the rules underscore the importance of editorial control lying in Indian hands. MCCS says key personnel cannot be removed without STPL’s prior approval. ‘‘As the IMG can only recommend, it is the GoM which will decide,’’ Ministry sources said.

Meanwhile, it is learnt, officials have been directed by I&B Minister Ravi Shankar Prasad to revise the old Broadcast Bill of 1997, which never saw the light of day.