INDIA & THE WTO
NEW GOVERNMENT
COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES
SEARCH REDIFF

Cable firm slaps suit against Hindujas' media arm

Two Hinduja-controlled media firms in India, IndusInd Media & Communications Limited, a ground distributor of satellite and city-centric terrestrial television channels, and Cable Video India Limited, a movie software unit, are facing a suit for Rs 13.12 billion in the Bombay high court.

The suit has been filed by the Encore group, another cable firm in Bombay promoted by a (breakaway) group of former Indusind executives.

The Encore group comprises Jagjit Singh Kohli, Yogesh Radhakrishnan and Yogesh Shah, all former senior employees with IndusInd. They contend that the Hindujas had made a commitment to offer top executives stakes in IndusInd and CVI, but failed to honour it.

The Hindujas' refusal to settle the dues led to the break-up of IMCL. The breakaway group formed Encore and joined hands with the Rajan Raheja group, IMCL's rival, to form Win Cable & Datacom Private Limited.

Trouble broke out between the two groups in September 1998, following the murder of Ram Punjabi, who was the fourth partner in Encore. Punjabi's business partners had demanded settlement of his dues (the promised stake in IMCL and CVL), based on current valuation, in favour of his family members.

The suit claims Rs 10 billion in dues and Rs 3.12 billion towards compensation based on current valuation.

Business