Mumbai: ED has attached assets worth Rs. 13 crore of the Phonographic Performance Limited (PPL), the body that exclusively holds public performance rights and radio broadcasting rights for over 5 lakh songs in the country, in connection with its money laundering case probe against it and its sister concern IPSR.
The agency’s zonal office here has issued orders under the Prevention of Money Laundering Act (PMLA) attaching bank balance to the tune of Rs. 13.04 crore of Ms PPL.
Enforcement Directorate (ED) had registered a PMLAcase against another premier body in this domain, Ms Indian Performing Right Society Limited (IPRS) last year in March on the basis of criminal complaints and police FIRs made by lyricists and song writers who alleged “they not been paid their dues by IPRS and that there were gross irregularities in its affairs.”
The agency had also attached mutual funds worth Rs. 70.17 crore of IPRS in this case last year.
“During the course of investigation, it was found that office bearers of Ms IPRS had assigned their rights to issue user licenses and collect royalties to Ms PPL on the basis of revenue sharing on per song basis. However, in connivance with IPRS and Ms Select Media Holding Pvt Ltd (SMHPL), Ms PPL indulged in criminal conspiracy and cheating and revenue due to Ms IPRS was not paid to them.
“Investigations reveal that an amount of Rs. 13.04 crore was thus retained fraudulently by PPL which led to non-payment of royalties to members of IPRS which are music writers, composers, directors among others. Therefore, proceeds of crime to the tune of Rs 13.04 crore have been provisionally attached on June 6,” a statement issued by the agency said.
The statement added PPL is a copy right society for sound track recording companies (music companies) and it also concurrently issues licences to the users of sound or music recordings for public performance on behalf of member music companies.
“It was alleged that as both IPRS and PPL are dominated by music companies hence rights of literary work owners like lyricists and music composers are being undermined and IPRS is not collecting and distributing their due royalties,” it said.
IPRS collects royalties on public performance of songs and music from consumers like restaurants, radio stations, television channels among others and distributes royalties so collected amongst authors (lyricists), composers (music directors) and publishers (music companies) in the ratio of 20:30:50 (up to June 21, 2012) and in the ratio of 25:25:50 thereafter.
Affairs of IPRS are managed by a Governing Council comprising directors, some prominent names in the music industry, and representatives of popular music companies in the country.
