DD wants new B4U to clear dues if new deal is to be signed

DD wants new B4U to clear dues if new deal is to be signed
ANURADHA RAMAN

NEW DELHI, MARCH 13: B4U may have changed its name to B4U Broadband to continue its arrangement with public broadcaster Doordarshan, but the latter wants it to first clear its dues amounting to Rs 1.75 crore it incurred in its previous avatar.

After persuading media entertainment company B4U to offload film financier Bharat Shah and even change its name to B4U Broadband last month, Doordarshan is doing a rethink on its existing arrangement with the company. According to sources, Prasar Bharati CEO Anil Baijal is reviewing the existing financial arrangement with the entertainment company. The decision to review the existing arrangement coincides with the Mumbai Police filing an 1,800-page chargesheet against Shah, who has been in custody since January this year.

When contacted, B4U CEO Ravi Gupta said the old agreement signed in October last year will continue till a new one is finalised in its place.

While talks are on about the possibility of DD entering into a new arrangement with the new company, officials said the entertainment company has to clear its dues first. ``B4U has accumulated a lot of dues due to its inability to sell airtime to advertisers. We have to get the money back,'' sources said.

Ever since reports about Shah's nexus with Mumbai's underworld surfaced late last year, Doordarshan has reportedly been under pressure to review its arrangement with B4U. While officials clarified that they were not in a position to terminate the agreement, DD did manage to persuade the company to rechristen itself.

B4U CEO Ravi Gupta said the new company with Kishore Lulla, among others, as a partner, will be clearing all the dues incurred by his company, regardless of the change in name. ``Bharat Shah has nothing to do with the new company although he continues to be the financier of B4U Multimedia,'' Gupta clarified.

According to the agreement signed between B4U and DD last October, the entertainment company has to supply latest blockbusters on every public holiday and third Friday of the month, on a 50:50 revenue sharing basis which is likely to change to 60:40 in DD's favour.

``While it is tough selling time to advertisers, DD has the distinct advantage of catering to nearly 60 per cent of the viewers in India and that is the reason why we would like to continue out arrangement with the public broadcaster,'' Gupta said.