V K Shunglu Committee Blamed Prasar Bharti for Incurring Losses to Exchequer

The V K Shunglu committee appointed by the government in October 2010 to investigate financial irregularities in the award of broadcasting rights of Commonwealth Games submitted its first report to the Government on 29 January 2011.  The committee included former DoPT secretary Shantanu Consul as a member. The committee observed that the Indian exchequer was robbed of at least 135 crore due to the awarding of the contract for production and coverage of the Commonwealth Games to UK-based firm SiS Live. The committee mentioned that a clear nexus existed among SiS Live, New Delhi-based Zoom Communications and members of the Prasar Bharti management. The committee blamed former CEO B S Lalli for deliberately ignoring the I&B ministry’s concerns and siding with private broadcast firm SIS Live ahead of the Commonwealth Games.

As per the report significant changes were made in the contract relating to liquidation damages and sub-contracting without I&B ministry’s approval. The changes agreed to by Prasar Bharati included changes in terms of payments, performance guarantee, liquidated damages and duties and liabilities of Prasar Bharati and SIS Live as well as sub-contracting. These changes were against the interests of Prasar Bharati and diluted the liabilities and obligations of SIS Live. The report emphasised that an advance payment to SIS Live was hiked from 30% to 60% days before the Games despite the ministry’s reservations.  The public broadcaster also ignored the ministry’s advice to conduct price comparisons and verification of services and was willing to pay exorbitant rates for production and coverage of the Games.