Pubcaster spends Rs 20 million as fees to arbitrators for recovery of Rs 3.95 bn

NEW DELHI: Prasar Bharati has spent a sum of Rs 20.43 million to pay former Supreme Court and High Court judges to act as arbitrators to recover claims in 27 cases.

Parliament was told by Minister of State for Information and Broadcasting C M Jatua that the amount sought to be recovered was Rs 3.95 billion.

The Minister said that Prasar Bharati had said that in view of the arbitration clause inserted in the agreements, the matters could not have been taken before other judicial authorities.

In another reply, the Minister said that a sum of Rs 8.43 million had been recovered by encashing bank guarantees relating to 11 defaulting producers since 2010. These included two cases each of PAS International and Art Advertising, and one each of Pritish Nandy Communications, Liazo of Kolkata, Signet Communication, Mast Media, Joel Advertising, TBWA Anthem, and PSI (Population Services International).

Proceedings were also initiated against Fame Communicatiins (Cinevista), Creative Channel, and Nimbus Communication for a total principal amount of Rs 331.10 million and interest till date of Rs 193.59 million.

A single bench of the Bombay High Court had in July 2002 directed Nimbus to pay a sum of Rs 763.42 million along with interest at 18 per cent per annum on the principal sum of Rs 62.80 million with effect from 1 September 1998. The broadcaster?s case is pending before the Court but it has paid a sum of Rs 30 million and furnished a bank guarantee of Rs 40 million to the Court in terms of its order.