'DD changed CWG contract without I&B Ministry's knowledge'

Last Updated 26 October 2010, 11:45 IST

Documents available show that certain clauses in the final contract had been altered to accommodate the UK-based SIS Live, which had the sole telecasting rights for the Commonwealth Games, sources said a day after Prasar Bharti CEO B S Lalli claimed that the Information and Broadcasting Minister had cleared the contract.
In one of the clauses in the draft contract, which was cleared by the I and B Ministry, and was required to be incorporated verbatim in the final document, an extra sentence was inserted which sources said was an attempt to favour the company.

The clause on cessation of services in the final document had an additional sentence which entitled SIS live to walk away with all its equipment as well as the equipment of its sub-contractors upon termination of contract by either party, the sources said.

This particular clause made it virtually impossible for the Prasar Bharti to take any action against the company as it could have disrupted the entire telecast services of the CWG Games, they said.

SIS Live eventually did threaten to withdraw, which Prasar Bharti had yesterday attributed to the delay in handing over of the games venues to them.
The draft document also provided for liquidation damages to be paid by either party only in the case of loss or damages due to negligence on part of either party.
But in the vetted and signed contract, a provision was inserted for payment of liquidation damages by the host broadcaster on account of delay in payment by more than 10 days, which can go upto 10 per cent of the contract price.
Perhaps the most controversial part, the draft contract did not allow the entity to assign or transfer the contract or any part thereof. But this was amended in the vetted contract to the effect that sub-contractors can be used for the services, the sources said.

Information and Broadcasting Ministry sources said while the draft contract was vetted and cleared by the Ministry, the final contract, which was signed, was not. It was, however, obligatory for the Prasar Bharti to follow the draft contract in letter and spirit.

(Published 26 October 2010, 08:54 IST)

Follow us on