Now, it’s Subhash Ghai’s turn to say bye to B4U

Now, it’s Subhash Ghai’s turn to say bye to B4U
EXPRESS NEWS SERVICE

MUMBAI, FEB 24: Just one month after bulge-bracket financier Bharat Shah's arrest, B4U has suffered yet another blow with showman Subhash Ghai rescinding Mukta Arts' contract with the channel worth Rs 14 crore, which he had signed in August last year.

Speaking to êIThe Indian ExpressêR, Ghai said B4U had defaulted on payments and, therefore, Mukta Arts was forced to cancel the deal to supply software to the channel. ``After signing the contract on August 20, B4U paid Rs 1 crore as the first instalment, but defaulted on the second instalment due in December 15,'' said Ghai.

He added that his company had given the channel enough notice, but when B4U failed to pay by January-end, Mukta Arts board members decided to withdraw. ``The CEO, Ravi Gupta, admitted the channel's inability to pay the amount,'' Ghai said.

Under the contract, Mukta Arts was to create a library of eight films produced under their banner, including Karz and Taal, for the channel.

Ghai vehemently denied that the decision had anything to do with Bharat Shah's arrest. ``It was an amicable decision taken purely for business reasons,'' he stressed.

Earlier, Laxmi Mittal, one of B4U's promoters, had withdrawn his stake in the channel. B4U CEO Ravi Gupta is in London currently -- supposedly to make a last-ditch attempt to convince UK-based Mittal -- and could not be contacted.

A spokesperson for the channel denied that Mittal had withdrawn his stake, but conceded that the contract with Mukta Arts was aborted. ``Ghai has withdrawn from the contract,'' he confirmed and refused to comment further.

Ghai said now he plans to sell the rights of Mukta Arts films to another channel, though talks are at a preliminary stage.