ED swoops down on 5 music firms
Lyricist Javed Akhtar is among many artists who were not paid royalties
The Enforcement Directorate on Friday swooped down on five top music companies -- Universal, T-series, Sa Re Ga Ma and YRF Music – in connection with a money laundering case. Lyricist Javed Akhtar is among the complainants in the case along with other artists who have alleged non-payment of royalties and other gross irregularities in the functioning of the Indian Performing Right Society and the Phonographic Performance Limited. The ED had registered a case against the two entities under the Prevention of Money Laundering Act on the basis of these complaints. The other two specific charges are cheating and criminal conspiracy. In May this year, Akhtar had also given a statement in this matter. It is alleged that an amount of Rs 13.04 crore was retained by PPL, which led to non-payment of royalties to the members of the IPRS. In fact, last year, the ED had attached assets worth Rs 13 crore of PPL, describing it as "the “proceeds of crime.”
The agency also attached mutual funds worth Rs 70.17 crore of the IPRS. During investigation, it was found that office bearers of IPRS had assigned PPL the rights to issue user licenses and collect royalties on revenue sharing per song basis. Over a period of time, there were allegations that together with a few officer-bearers of IPRS and one Select Media Holding Pvt Ltd (SMHPL), PPL had indulged in criminal conspiracy and cheating by not paying the royalties to the artist/labels. The IPRS was formed in 1969 and is a representative body of owners of music including composers, music directors, lyricists and the publishers of music; it is also the sole authorized body to issue licences permitting usage of music within India by any person. It collects royalties on the songs and music played at public places like restaurants, radio stations, television channels, among others, and then distributes it among the authors/composers and publishers. PPL owns and exclusively controls public performance rights and radio broadcasting rights of more than 7 lakh songs in different languages.