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DAS allows retrospective application of RIO rates, argues Taj

NEW DELHI: Continuing its argument in the case against Hathway Cable & Datacom for the second consecutive day, Zee Entertainment Enterprises Ltd’s (ZEEL) distribution arm Taj Television has contended that the multi-system operator (MSO) has to pay outstanding dues based on the new agreement.

Taj contended that the broadcasters were well within their rights to charge the outstanding amount based on the new agreement as the previous agreement had expired. To buttress its point, the distribution company stated that Clause 5.16 of DAS regulation allows broadcaster to apply RIO rates retrospectively.

Hathway had argued that the broadcaster cannot apply RIO rates retrospectively for the outstanding dues for the period and that it should rather be paid on the old agreement.

Taj Television counsel had earlier mentioned that Hathway has to pay Rs 110 crore (Rs 1.1 billion) in outstanding dues including Rs 95 crore (Rs 950 million) for Zee channels and Rs 15 crore (Rs 150 million) for Turner channels based on RIO rates, a claim that is being fiercely contested by the MSO.

With Taj completing its arguments in the matter, it is now Hathway’s turn for a rejoinder.

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