ED files case against Lalli

The ED registered the case after it found instances of violations of the Prevention of Money Laundering Act (PMLA) in the deal related to transfer and transaction of funds.

There is more trouble for suspended Prasar Bharati CEO B S Lalli as the Enforcement Directorate probing the Commonwealth Games on Tuesday registered a case against Lalli and two firms named by the Central Bureau of Investigation.

In March this year,the CBI had registered a case against Lalli and others on the directions of the Prime Ministers Office (PMO) in connection with the awarding of the Rs 246-crore broadcast rights contract for the Commonwealth Games.

The ED registered the case after it found instances of violations of the Prevention of Money Laundering Act (PMLA) in the deal related to transfer and transaction of funds. Officials said they would now summon Lalli for questioning and recording of his statement in connection with the deal under the PMLA.

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According to the ED,Lalli struck a Rs 246-crore deal with a UK-based broadcast company SIS Live for the coverage of the Commonwealth Games held in 2010.

The alleged irregularities in the contract came under scanner after the broadcasting rights were granted to UK-based SIS Live for a whopping Rs 246-crore. The company further sub-contracted the same to an Indian firm,Zoom Communication,for Rs 177 crore. The Income Tax Department first raised the issue over the deal following scrutiny of the sub-contract papers. The ED is probing the deal under the Foreign Exchange Management Act (FEMA).

The Shunglu Committee,set up by Prime Minister Manmohan Singh to investigate alleged financial and other irregularities in the conduct of the games,had indicted Lalli and former Doordarshan director general Aruna Sharma in the award of broadcasting rights for the games which,it was claimed,had led to a loss of Rs 135 crore to the exchequer.

However,the CBI said they were yet to receive sanction from the government to investigate the role of Sharma,who has been repatriated to her parent cadre. Sharma is learnt to have filed her replies to the Ministry of Information and Broadcasting and the same is being examined by the officials of the ministry.