NEW DELHI: The Enforcement Directorate is looking into complaints of criminal activities like money laundering against Indian Premier League (IPL), Parliament was informed today.

Finance Minister Pranab Mukherjee said in the Rajya Sabha in reply to questions that there are certain "irregularities which are being looked into, particularly relating to some complaints received that there are investments, so far as IPL is concerned, from outside."

"Those are being looked into by the Enforcement Directorate because those are the criminal activities like money laundering," Mukherjee said.

He said the Board of Control for Cricket in India (BCCI) which organises the IPL Twenty20 series had enjoyed income tax exemptions till 2006. This registration was lost in 2006 following verdict of the Allahabad High Court. Since then, BCCI is subject to tax.

He said BCCI itself has taken certain action against IPL. Since the BCCI was earlier exempted from income tax, "there was no question for them to show low income," Mukherjee said, adding the authorities have raised the tax demand after the BCCI lost registration under the Madras Registrations Act.

Tax demands were raised for the assessment years 2007-08 and 2008-09 amounting to Rs 1.18 billion and Rs 2.57 billion respectively. As much as Rs 2.49 billion has already been recovered from BCCI, Mukherjee said.

The gross receipts disclosed by BCCI in its tax returns for the assessment years 2007-08 to 2010-11 are Rs 6.52 billion, Rs 10 billion, Rs 13.88 billion and Rs 16.67 billion respectively, Mukherjee said.

The concerned agencies are looking into the "criminal activities and other areas" under relevant laws, he added.

MUMBAI: Machdar Motorsports is hoping to do for motorsports what the Indian Premier League (IPL) has done for cricket. The motorsports management company has launched the i1 super series, a franchise-based model consisting of nine teams in seven cities involving 14 races.

The nine franchises are being sold at a base price of $5 million by invitation only.

Conducted under the aegis of the world governing body FIA (Federation Internationale de l‘Automobile ) and the Federation of Motor Sports clubs of India (FMSCI), the i1 Super Series event will kick off on 18 December in Noida. It will also have races in Chennai, Pattaya, Kuala Lumpur, Doha, Dubai and Abu Dhabi.
 
"We are speaking to cricketers like Sachin Tendulkar, Yuvraj Singh and Bollywood stars for funds. We hope to finalise deals next month. We want franchise owners who are passionate about developing the event,? 1 Super Series managing director Darshan M said.

The franchises are expected to recoup their investments in the fourth year. "In addition to the fee, the franchises will spend around $2.5-3 million a year. An entity will own a franchise for 15 years. Each team will race with two cars forming an 18 car grid. We have identified 10 cities including the major metros where franchises will be located,? said Darshan.

Sixty per cent of the central revenue pool will go to the franchises. The coverage of the events will be in high-definition.

?We are talking to different parties regarding television production and coverage. Each race will be of 45 minutes and it will be a sprint format rather than an endurance one. There will also be television specials around each race. We are offering $2 million in prize money,? said Darshan.

The cost of running an event will be around $12-15 million. Apart from television fees and sponsorship, merchandise and hospitality are some of the other revenue sources for the franchises.

Franchises will have a pool of experienced drivers to choose from. "We will hold on-ground ?Festivals Of Speed? to market the event. This will have features like drag races and drifting. There will be music and entertainment to bring people closer to the experience. In the long run, we want to set up academies and minor leagues. We will launch a foundation to support talent,? said Darshan.

The company is also looking at doing an event for motorbikes, probably next year. "The aim is to be like the MotoGP. We want to create a brand that can engage with sponsors, manufacturers, circuits and partners and encourage Indian motorsport to become internationally known and respected," said Darshan.
 

MUMBAI: India shines bright in Sony‘s fiscal first-quarter performance that was darkened by a mounting loss of $199 million, shaken by the Japan earthquake and a decline in the consumer electronics major‘s PS3 sales.

Riding on the back of higher advertising revenues from its television business in India, the Sony Pictures Entertainment segment put up a better show.

"The current quarter benefited from significantly higher ad revenues from SPE?s television network in India and revenues recognised from the consolidation of the Game Show Network, which was accounted for under the equity method in the first quarter of the previous fiscal year," Sony said in its earnings statement.

The India story was written by the Indian Premier League (IPL), the hottest cricketing property that has attracted younger audiences to the sport‘s shorter 20-over format.

Speaking to Indiantelevision.com, Multi Screen Media president network sales, licensing and telephony Rohit Gupta said that the network managed to grow ad revenue by 30 per cent in the first quarter. "We had a strong performance from the IPL. The other channels have also fared well. We have managed to grow our yield. The start has been terrific."

SPE?s operating income increased to $53 million, triggered by growth in India and the recognition of a $27 million gain on the sale of SPE?s equity interest in a television production company based in the UK. This increase was partially offset by higher marketing expenses incurred for upcoming theatrical releases due to the greater number of major theatrical releases in July of the current fiscal year as compared to the previous fiscal year.

In the motion pictures? segment, sales increased by 9.3 per cent year-on-year to $1.7 billion. The current quarter benefited from an increase in motion picture revenues primarily due to higher home entertainment revenues from the previous fiscal year?s film slate, including the home entertainment releases of The Green Hornet, Battle: Los Angeles and Just Go With It. Partially offsetting this increase was a decrease in theatrical revenues as the first quarter of the previous fiscal year benefited from the strong theatrical release of The Karate Kid.

Overall sales for Sony were $18.4 billion, a 10 per cent dip compared to the same quarter of the previous fiscal primarily due to decreases in sales in the Consumer Products and Services (CPS) and Professional Devices and Solutions (PDS) segments, which were mainly affected by the negative impact of the earthquake as well as the deterioration of the electronics business environment, and unfavorable exchange rates. PS3 sales fell to 1.8 million, from 2.4 million the same time last year.

Operating income decreased to $340 million. This was mainly due to lower operating income in the CPS and PDS segments, primarily resulting from a decrease in gross profit from lower sales and deterioration in the cost of sales ratio.