CBI registers case agst Lalli, Dehlvi, carries out searches

New Delhi, Mar 4 (PTI) The Central Bureau of
Investigation (CBI) on Friday registered a case of fraud and
criminal conspiracy against suspended Prasar Bharti, India's
national broadcaster, CEO B S Lalli and Chairman and Managing
Director of Delhi-based Zoom Communications Wasim Dehlvi for
alleged irregularities in broadcasting rights contract of
Commonwealth Games which resulted in a loss of Rs 100 crore to
exchequer.
Soon after registering the case, the CBI teams swooped
down on the premises of Lalli and Dehlvi in the national
capital and carried out detailed searches for about seven
hours during which Lalli was extensively questioned by the
investigating officials.
The agency has filed a case against Lalli and Dehlvi,
who is also the resident director of UK-based SIS Live, under
section 120-B and 420 of Indian Penal Code related to criminal
conspiracy and fraud respectively. The agency has also charged
the duo under the Prevention of Corruption Act.
The CBI alleged that a major portion of Rs 246 crore
contract given to UK-based SIS Live by Prasar Bharti for
"production and coverage" of Commonwealth Games was
sub-contracted to Zoom Communications for only Rs 176 crore
resulting in loss of nearly Rs 100 crore to the exchequer.
"It is alleged that the then CEO of Prasar Bharti had
extended undue favour to the UK-based company in the award and
execution of the contract inspite of the objections from
various quarters within Prasar Bharti," DIG and spokesperson
Binita Thakur told reporters.
She said a number of conditions were relaxed in favour
of the UK-based company including a provision pertaining to
sub-contracting.
"During the execution of the contract, the UK-based
company was extended further favours by permitting payments
despite of shortcomings in services and without proof of
payment of service tax as well as by way of bearing cost for
certain services, cost of which should have been borne by
UK-based company resulting in loss to exchequer," she said.
The searches which started at 7.30 AM continued for
nearly seven hours suring which a number of documents were
seized by the officials, agency sources said.
In a statement, Zoom Communications said, "Earlier
on Friday, investigating authorities visited the Zoom
Communications premises and have been speaking with our
company officials."
"Zoom Communications was one of the subcontractors to
SIS Live for CWG Delhi 2010. The use of subcontractors 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," it said.
The company said it is and will continue to provide all
the required information and support to help with the
investigation.