Days after Prime Minister Manmohan Singh directed the Central Bureau of Investigation (CBI) to take action against suspended Prasar Bharti CEO B S Lalli,the investigating agency on Friday registered a case against Lalli and a UK-based firm along with its Indian counterpart in connection with the alleged irregularities in the award of broadcasting rights of the Commonwealth Games. The scam reportedly resulted in a loss of Rs 100 crore to the government. Raids were also conducted on the houses of Lalli and chairman and managing director of Delhi-based Zoom Communications Wasim Dehlvi,who is resident director of UK-based SIS Live. Lalli and Delhvi were also questioned by the CBI in connection with the seizures. The documents seized during the raids are being examined and we will further summon them for questioning, added a CBI official. CBI spokesperson and DIG Binita Thakur said,It is alleged that the then CEO of Prasar Bharti had extended undue favour to the UK-based firm in the award and execution of the contract in spite of objections from various quarters within Prasar Bharti. The UK-based firm was awarded contract worth Rs 246 crore for production and coverage of CWG 2010. The agency said a number of conditions in the contract were relaxed in favour of the UK-based firm,including a provision pertaining to sub-contracting. The major portion of this contract was sub-contracted by SIS Live to Delhi-based Zoom Communication for Rs 176 crore. It was also found that during the execution of the contract,SIS Live was extended further favours by permitting payments despite shortcomings in services and without proof of payment of service tax. On the role of the UK-based broadcaster,the CBI said they would first analyse the documents seized and then seek a legal opinion to proceed against officials of SIS Live. We have also found the e-mails exchanged between Zoom Communication and SIS Live about the contract, added the official. In a statement Zoom Communications said,On Friday,investigating authorities visited the Zoom Communications premises and have been speaking with our company officials. Zoom Communications was one of the sub-contractors to SIS Live for CWG Delhi 2010. The use of sub-contractors was expressly contemplated in the Prasar Bharati and SIS Live contract and therefore not illegal. The agreement between Zoom Communications and SIS Live was purely commercial and transparent. Zoom Communications is and will continue to provide all the required information and support to help with the investigation.
