GECs
Consensus eludes CAS task force
NEW DELHI: As they say in cricket, something’s about to give way.
Either the Indian government will buckle under pressure from various factions of the broadcasting and cable industry on the issue of basic tier’s price, or it may just go ahead and declare the price. The likelihood of the latter happening on Tuesday is high.
The task force meet on conditional access held today, once again, failed to arrive at a consensus on the issue of pricing of the basic tier and the parameters taken to arrive at various figures being bandied around.
The chairman of the task force is understood to have conveyed to other members, specially cable ops, that if there is no unanimity on the pricing issue in the meet tomorrow, then the government would have no choice but to go ahead with the figure cobbled together by the finance ministry- Rs 45.90 (exclusive of local and entertainment taxes) — even if certain sections feel the figure is far removed from ground realities.
The government has also told all stakeholders that the details of costs, backed by relevant documents, should be submitted for a final round of hearing on the cost issue by 11 am tomorrow.
The frustration and confusion in the task force is evident from the fact that a survey undertaken by an independent body- Becil/ORG Marg- too has not been able to bring smiles on everybody’s face. Rather the report done at the behest of the government and the industry was today literally shredded to pieces by the cable operators in the task force.
According to Rakesh Dutta, an independent cable op and a task force member, “The way things are moving, it is becoming increasingly difficult to arrive at any consensus. The cost of the basic tier being suggested by the government and others would not be acceptable to cable ops who’ll have no option but to down shutters and suspend cable services.” Other cable operators also echoed similar sentiments.
Some of the figures and data presented in the survey are quite contrary to what the cable industry has been representing, it seems. For example, on the issue of cable ops use using standardised equipment, the report states that in cities like Delhi and Kolkata mostly local equipment sans the ISI mark are used, while in Mumbai in certain pockets branded products are used.
The survey, according to some figures made available to indiantelevision.com, states that a franchisee cable operator in Mumbai on an average has 2,555 subscribers per sq. km, while the corresponding figures in Delhi is 1031, Kolkata 1266 and Chennai 1383.
It seems the ORG-Marg conducted survey for Becil is highlighting the fact that cable operators do have large subscriber bases, but their cost is not much as being proclaimed. Reason: standardised equipment is not used by all. In case of Chennai, for example, the report states that no details were forthcoming where equipment and their standardisation was concerned.
Though some representatives of broadcasting organisations did raise doubts over the authenticity of the survey and its findings, the doubts were laid to rest quickly as the chairman is understood to have said that the terms of reference for the survey was limited and decided upon earlier.
Interestingly, the lone person representing free to air channels in the task force, Sahara TV president Mahesh Prasad, raised an important issue: carriage fee for free to air channels in the basic tier.
Prasad, rightly so, pointed out that post-CAS it should be ensured that free to air channels don’t have to pay carriage fees (mostly to MSOs) considering the minimum number of channels in the basic tier is being specified at 30.
Though the issue did not receive the attention it should have, in days to come carriage fee would rear its head as channels would jostle with one another to occupy limited bandwidth and capacity of an average TV set to receive the number of channels.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
