It explicitly names newspapers and channels — including some of the biggest groups in the country — seen as having indulged in the “paid news” practice.
“The phenomenon of ‘paid news' goes beyond the corruption of individual journalists and media companies. It has become pervasive, structured and highly organised and in the process, is undermining democracy in India.” So finds the draft report of inquiry conducted into the phenomenon by the Press Council of India to be discussed by the full Council on April 26 in Delhi. The Hindu has obtained a copy of the report to be put up at that meeting.
The report is titled “Paid News: How corruption in the Indian media undermines Indian democracy.” It marshals a vast amount of material on the issue and is a compendium of media malpractice. It explicitly names newspapers and channels — including some of the biggest groups in the country — seen as having indulged in the “paid news” practice. The report could run into rough weather for that reason, with a few Council members reluctant about naming names. (Though it gives space and weightage to the denials of the media groups under the scanner.)
The “lack of consensus” over naming names also extends to the report's reflection of the views of journalists' unions which have called for strengthening the Working Journalists Act. The unions assert that the contract system of employment now in vogue undermines the independence of the journalist and the primacy of the editor. The Delhi Union of Journalists even informed the Council that “selected journalists had been targeted by managements of media companies for not acquiescing with such malpractices”.
Interestingly, many prominent politicians and public figures either deposed before the inquiry panel or made written submissions to it. Others also handed the panel their statements on the subject elsewhere. Across the spectrum, points out the report, even politicians normally loath to antagonise the media have complained bitterly about what many of them see as little more than extortion. A Sub-Committee of the Press Council, comprising Paranjoy Guha Thakurta and K. Srinivas Reddy, conducted the inquiry. Their report quotes opposition leader Sushma Swaraj's statement that the “paid news” menace had “started out as an aberration, went on to become a disease and is now an epidemic”.
The report speaks of the “deception or fraud” that paid news entails as having three levels. First: “the reader of the publication or the viewer of the television programme is deceived into believing that what is essentially an advertisement is in fact, independently produced news content.” Second: “By not officially declaring the expenditure incurred on planting “paid news” items, the candidate standing for election violates the Conduct of Election Rules, 1961, which are meant to be enforced by the Election Commission of India under the Representation of the People Act, 1951.” And third: “by not accounting for the money received from candidates, the concerned media company or its representatives are violating the provisions of the Companies Act, 1956 as well as the Income Tax Act, 1961, among other laws.”
The report notes the “huge amount of circumstantial evidence that has been painstakingly gathered by a few well-meaning journalists, unions of journalists, other individuals and organisations together with the testimonies of the politicians and journalists who have deposed before the Press Council of India.” And says this “goes a very long way in establishing the fact that the pernicious practice of paid news has become widespread across media (both print and electronic, English and non-English languages) in different parts of the country. Interestingly, this phenomenon appears to be less pervasive in states (such as Kerala or Tamil Nadu) where the media is clearly divided along political lines.”
The report traces the emergence of the paid news phenomenon over years and phases including such forms of space selling as MediaNet and Private Treaties. “In pursuing its quest for profits,” it says, “it can be argued that certain media organizations have sacrificed good journalistic practices and ethical norms”. What began as individual or one one-off transgressions, it points out, became institutionalised over the years. “Private Treaties” involve deals where corporates pay media companies in shares for advertising, plus other, favourable treatment. The “Private Treaties” have also disturbed the Securities Exchange Board of India (SEBI) which, as early as July 2009, wrote to the Chairman of the Press Council of India, Justice G.N. Ray, that such strategies “may give rise to conflict of interest and may, therefore, result in dilution of the independence of [the] press vis-à-vis the nature and content of the news/editorials relating to such companies”. SEBI “felt that such brand building strategies of media groups, without appropriate and adequate disclosures, may not be in the interest of investors and financial markets as the same would impede in them taking a fair and well-informed decision”.
The “Private Treaties” structure lost its sheen when the stock market crash of 2008 saw those shares acquired from corporates plummet in value. However, the media companies were still to be assessed for tax purposes at the old values prevailing at the time of such contracts. “Paid news” was one way out of this trouble. Since all the transactions were illegal and off the account books, it benefitted both media owners and politicians.
The report explores several ways to curb the menace of “paid news”. It seeks a far more pro-active role from the Election Commission for instance. It calls on the ECI to set up “a special cell to receive complaints about ‘paid news' in the run up to the polls. Where a prima facie case is established, it calls on the ECI to initiate action against offenders.
It asks that the ECI nominate independent journalists or public figures to help monitor the phenomenon during elections. It calls upon media organisations to desist from having their correspondents “double up as agents collecting advertisements for their organisations and receiving a commission on that revenue”, instead of regular salaries, retainers or stipends.
The report also calls for giving regulatory bodies like the Press Council more teeth. It further appeals to media organisations to adopt a number of principles that would curb “paid news”. However, it recognises that self-regulation and civil society oversight, while welcome and useful, can tackle the problem “only to an extent”. There would have to be effective use of existing laws to “apprehend those indulging in practices that are tantamount to committing a fraud on the public”.
Keywords: Press Council of India, democracy, paid news, newspapers, channels, report
I feel so sorry for the Press Council of India. Who will guard the
guards themselves.Time has come, and I wrote it,to replace the so called 4th estate with the 5th social networking, Wikileaks-type to expose the so called ex posers turned crass deceits. Transparency international is to be the new Avatar of the 4th estate. Grow up or get lost,Free Press India and thanks to doyens like Saninath.
It's a good article. The problem of politicians planting news has been thoroughly covered. But the article doesn't talk as much about news planted by influential industrialists and corporations.
The Indian Democracy cannot exist without a free press that performs its most important function of 'comforting the afflicted and afflicting the comfortable'. The coverup of the original PCI report is the gravest threat to Indian democracy. The Indian public must demand this original PCI report on PAID NEWS be tabled and discussed at various public forums across the country. Those publications and channels that were not part of this ugly enterprise of paid news that scuttled the original publication, ought to act to make this happen without further delay .Atleast let the non-corrupt media institutions fulfill their responsibility to Indian society and the nation .
In democracy the buck stops at the door of people. Institutions are only arrangements to facilitate the work of and for people. It is time that all freedom loving people stop buying any newspaper, magazine, TV channel of the tainted/ doubtful publication group. Also let us inform all our friends to do the same and in turn inform their friends. If Egyptians can hope to change regime by using network, then we can definately hope and bring Media moghuls to sense.
Mr. Sainath, do non-members have access to PCI archives? Anyway, I found this link that seems to be the report mentioned above. Can you confirm that this is correct?
http://mediavigil.blogspot.com/2010/05/paid-newshow-corruption-in-indian-media.html
Thanks to Hindu for keeping a shred of journalistic integrity by publishing this article. In Hindi it is said "JAB RAKSHAK HEE BHAKSHAK HO JAAYE" is pertinent here delineating the Indian media. By omitting the specific names of the guilty newspapers in the PCI report, and never mentioning a word about this scandal, these news outlets have lost all semblance of respect from the aware citizens. Although free press is considered an essential pillar of democracy, it is about time we had some laws to regulate the free and balanced reporting without corruption. If the news outlets consider themselves just another business, then why not have consumer protection in terms of fraud enshrined as a citizen's right. Unfortunatly the laws are too vague or non existent in this regard. Paid news borders on a bribe with the intent of profiting by winning office etc. The Hindu should write an article about the legal system in India that could possibly tackle such practices by the media.
Thanks for bringing into light this harsh reality in detail. Works like these provide hope to our society that there is Light at the end of the dark tunnel. I hope and pray that Right people have the Courage to take Right actions.
One grouse of the vigilant readers of Indian newspapers is that for the most part the coverage is out of a handouts or newspapers are being seen as only some exalted versions of the government gazette. The point in these perceptions is that there is complete following of the government line. Leave aside political ideologies and differing stands of the political parties on the issue of projects and project expenditure, there is need for a critical examination of the projects. Astronomical amounts are spent on these projects. Now a new mantra of public private partnerships is being followed. How far the propjects selected are fulfilling common man's benefits or whether they are elitist in character are not critically examined.
'Everything is for money, honey'. This is very sad but true. Paid News is not only limited to political parties who misuse the media with their power but also bigger business corporations who also are now profoundly using this platform to communicate to their audience and sell their products.
Keep on the good fight, Mr. Sainath. You have our (shamefully silent) support.
This shows how far our politicians and the media can stoop down in their standards and decency!
Mr. Sainath that was a well written piece.
Its now or never we realize that paid news is undermining the world's largest democracy.
I think there is only one solution. Post the report anonymously on wikileaks.
Firstly, article like these keep people informed. After reading this article and the comments that followed, it is clear that corruption has climbed new heights in India. Be it politics, news, social service any and every field is profitable, if you know how. I like to quote what Martin Luther king said ‘Peace is not the absence of conflict but the presence of justice’.
Wars are only raged for something we love or feel the need to protect; I guess a time will come when we need to fight a war for our true democracy, and it will be a war of true proportions, for we have fallen too deep into the depths of corruption.
Another scourge of the Indian Media and even worse than Paid News is (ulterior) Motivated views passing of as News. Does any Newspaper in India really pass this test?
Excellent article Sainath! It's only few prudent journalists like you, who uphold the faith of people in Media and to a larger extent, Democracy.. This note is to just remind you that the People of India are always with fearless journalists like you.
The PCI's act is shameful and spineless.
why not Hindu put up the sub-committee report on its web-page or as headlines? Please do it for all of us to know the reality of many a media-houses in India.
It is unfortunate that professional bodies are more lured by money than the ethics and morals that provide the credibility to their professions.
Its a very shameful act by a section of media owners with vested interest. The media can no longer claim moral high ground over politicians.
I'd like to thank(not congratulate :-))Mr.Sainath for bringing this to light in the first place.Are we supposed to be afraid of the media-politician nexus or do we celebrate the fact that the media is watching over other media.An interesting dichotomy I would say.
Thanks for highlighting the "paid news" practice of media. It really strongest issue, as democracy says we can voice our view, it is media's responsibilty to get the hidden things out to show public and get them awarness and truth. but its shame to know that , they are deviating from thier responsibilities. It's huge mistake by media, whether it is print or news channel. Now media hiding truth , and protecting harmful menace.
If a Gauge doesn't works properly it will be difficult to assess,monitor and control a system. Similarly if press faults which could prove collateral damage for the democracy system of governance.
So, everybody Wake up and raise voice against these menial practices.
But, is this an election time issue only? During peace time, Biz houses , individuals could take up the candidate's role.
"It explicitly names newspapers and channels — including some of the biggest groups in the country — as seen having indulged in the “paid news” practice." This is a matter of disgrace. For money the fourth estate has stooped low. Then how can we expect democracy to function to its core?
We love democracy. We won't allow any such event to undermine it.We request all the citizens of India to raise voice unitedly to reveal the names involved in corruption of Indian media.It is our strong conviction that media being mirror of the society, should be cleaned enough to reflct true picture of society.
It's a catch 22. We want media to be very free to allow free speech. But majority of the media is mis-using the law.
That's why I just choose to take few newspapers like The Hindu as input into my brain and rest of the newspapers are just for spicy news.. :)
Yah, the money part is bad. But the political leniency too.
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