Star disconnects supply of signals to Manthan due to payment default

MUMBAI: Broadcaster Star India has switched off signals to multi system operator (MSO) Manthan Broadband Service after a go-ahead from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

The MSO had failed to pay Rs 3 crore towards the arrears within the time permitted by the tribunal. Manthan had furnished cheques worth Rs 3 crore to Star on the last date by which the payment was to be made. However, on presentation, the cheques got bounced on a later date.

The tribunal noted that Star is entitled to disconnect the supply of signals to the MSO following which the signals were switched off.

Manthan counsel submitted that through RTGS admittedly an amount of Rs. 50 lakh towards the outstanding dues has been paid on 22 August and as per instructions another amount of Rs. 25 lakh has been transferred through RTGS to the broadcaster on 23 August.

The MSO had sought further two weeks’ time to complete the payment for Rs. 3 crore along with interest as indicated earlier. For the period subsequent to 25 May, the invoices have to be raised as per RIO terms.

According to Star counsel, some necessary clarifications are required to be furnished by the MSO in respect of incentives and also in respect of the subscriber reports which according to the respondent are discrepant in many respects.

The tribunal noted that it is up to Star to consider the MSO’s request for two weeks’ further time. It also asked the MSO to furnish the required clarification.

On instructions, the Manthan counsel clarified that the MSO regardless of what has been mentioned in the RIO agreement has supplied signals on a-la-carte basis and seek invoices on that basis in the light of subscriber reports already submitted.

The parties were asked to provide the information as to the subsequent development by the next date.

The matter has been posted under the same head on 5 September.

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