The Enforcement Directorate (ED) on Wednesday attached the movable property of Phonographic Performance Limited (PPL), a copyright society for soundtrack recording firms, in a money laundering case r
The Enforcement Directorate (ED) on Wednesday attached the movable property of Phonographic Performance Limited (PPL), a copyright society for soundtrack recording firms, in a money laundering case registered against the Indian Performing Rights Society (IPRS) and others.
The enforcement case investigation report (ECIR) in this case was registered in 2015 on the basis of criminal complaints of lyricists and songwriters who had not been paid their dues by IPRS. Gross irregularities by the management in the IPRS’s affairs were reported. On Wednesday the ED attached the PPL’s balance, which amounted to Rs 13.04 crore, in the case. The ED had attached properties in the form of investments made in mutual funds by IPRS to the tune of Rs 70.17 crore in October 2015. “The amount was accumulated by IPRS on account of royalties payable to their members but not distributed amongst eligible members and was invested in mutual funds,” an ED release said.
It was alleged that as IPRS, which collects royalties on public performance of songs, and PPL are dominated by music companies, the rights of literary work owners i.e lyricists and composers were being undermined and the IPRS was not collecting and distributing their due royalties, the release added.
During the course of investigation, it was found that in the office bearers of IPRS had assigned their rights to issue user licences and collect royalties to PPL on the basis of revenue sharing on per song basis. However in connivance with the IPRS and select Media Holding Pvt. Ltd, PPL indulged in criminal conspiracy and cheating and revenue due to IPRS was not paid to it. Investigations reveal that Rs 13 crore approximately was thus retained fraudulently by PPL.
