Mumbai: Continuing with its investigation into the allegations of singers not being paid royalty by music companies, the Enforcement Directorate (ED) questioned a top Sony Music official for over eight hours on Tuesday.
On November 3, the ED had raided offices of Universal Music Group, T-Series, Saregama, Sony Music and Yashraj Films in several locations, including Mumbai, New Delhi and Kolkata, based on a complaint earlier this year. These music companies have allegedly not paid royalty for songs to their singers and composers since 2012. The outstanding amount, the complaint said, ran into several crores. Several artistes have alleged that while their songs have been used commercially, including as caller tunes, they haven’t received royalty for the same since June 2012.
ED officers said Shridhar Subramaniam, president, India and Middle East, Sony Music Entertainment, reached their Mumbai office around 11 a.m.in response to a summons issued on Monday. “Mr. Subramaniam was questioned on various aspects of the case, including the reason for not paying royalty, and how this withheld amount was used. We have also seized documents related to the company’s financial transactions. Mr. Subramaniam’s statement will be cross-checked with our findings,” an ED officer said.
Top officials quizzed
After the raids, the ED had questioned Bhushan Kumar, chairman and MD, T-Series, and Vikram Mehra, MD, Saregama Music. “The priority is to find out if royalty money was used for other purposes,” the officer added. He said music companies have profited hugely as they own rights to the songs, through licence fees, service charges and other heads from those who used the songs.
Apart from Mr. Kumar, Mr. Mehra and Mr. Subramaniam, the ED has also summoned Aditya Chopra, chairman, Yash Raj Films and Devraj Sanyal, MD-CEO, Universal Music. They are expected to appear for questioning later this week, said sources.
Preliminary inquiries have revealed a multiple financial transactions by all companies, in which large amounts of money have been deposited in various accounts. While the ED suspects money meant to be paid to artistes has been parked in offshore accounts, its also said it is too early to comment. “We’ll have to go through documents on to the use of these songs by various parties, and the money received as royalty, after which we will compare dates of payments with those of the companies’ offshore transactions,” the officer said.
The ED is likely to record statements of these music companies’ clients to cross-check amounts the former received against the use of the songs. The agency will also investigate if these clients were misled that royalty was being paid to the artistes as per the Copyright Act.
HC to decide: Mudgal
Singer Shubha Mudgal, who had also filed a complaint against the Indian Performing Right Society Ltd (IPRS) and Phonographic Performance Ltd (PPL) with the Delhi Police’s Economic Offences Wing some months ago, told The Hindu , “Similar complaints were also filed by the Music Composers Association of India and Film Writers Association, and an FIR was registered. Consequently, the matter was settled with necessary assurances from IPRS and a quashing petition was jointly filed in the Delhi High Court by IPRS and PPL and other persons named as accused in the FIR. The same is pending disposal and is listed on November 20 for consideration.”
She refused to comment further, saying, ”These are the facts. And this is all I can say at this point. I can only speak about this after November 20.”
