MUMBAI: Fashion TV has finally decied to act. In a statement issued yesterday in Paris, FTV has said it is preparing 'a civil criminal charge against Lalit Modi and Modi group in France and in India'.
According to the statement, the move to press charges was triggered when the fashion channel was informed that Modi Entertainment Network, which had a distribution agreement with FTV, 'was entering into agreements selling the 'Fashion Bars' concept to third parties'.
According to the release, FTV has been informed that 'MEN is collecting substantial advance payments of as much as $100 000 even though the agreement between MEN and Fashion TV has been terminated'.
While MEN, which has maintained a stoic silence these past two weeks after pressing charges against FTV for having entered into parallel ad sales agreement with the Worldwide Channel and starting a FTA feed on Asiasat 2, FTV now seems determined to get even with its former ally.
'Even during the validity of the agreement, Modi needed the express written permission to engage Fashion TV in long term partnerships or franchising agreements such as Fashion Bars. Legal counsels in Paris consider this act by Modi as fraud as Modi has never and does not have in the present day the right to sign such agreements and take deposit, advance payments and royalties,' the statement says.
MEN and Fashion TV had launched the Fashion Bar in Bangalore late last year as a means to promote brand loyalty and develop niche clientele among the upper crust. FTV promoter Michel Adam says, "We found out Lalit Modi has been doing this all the time, and that is why we terminated the agreement."
Fashion TV is now appealing the stay order form Delhi High Court claiming that 'information provided by Lalit Modi to obtain the injunction is full of lies'. The Delhi HC had earlier stayed Fashion TV from starting a parallel FTA feed.
The channel has openly declared war with MEN, advising 'all interested parties to verify their commercial relationship between MODI Group and Fashion TV with their legal counsels.'
The ball now seems to be back in the Modis' court.
