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The discovery of a financial scam at a company in India’s West Bengal state is shining a light on the relationship between politicians and media owners, Mahima Kaul reports.
The firm in question, Saradha Group, had risen to become a financial empire over the past eight years under boss and owner Sudipta Sen. The company has business interests ranging from construction to travel to exports and agriculture. When the “chit fund” scandal came to light — with an estimated loss of $4-6 billion (US) to investors — Sen fled to Jammu and Kashmir, where he was ultimately arrested.
A chit-fund scandal, or “cheat fund” as some sections of the media are calling it, operates like a ponzi scheme. Sen duped many small and middle class investors into giving him their life savings, with promises of great returns. He managed to evade the regulators by using a nexus of companies to launder the money. The money collected was used to recklessly invest in a range of industries — including a mismanaged media empire. The government of West Bengal has had to set up a $2.5 million fund to ensure that the small investors are not bankrupted.
In a letter to the Central Bureau of Investigation (CBI), Sen claims to have been misled by a group of individuals who cheated investors by using his name, unbeknownst to him. However, the letter also shows how political patronage is obtained through acquiring media houses.
Saradha Group owns 18 newspapers and TV channels in West Bengal and Assam. These include Bengal Post, Sakalbela, Kalam, Paroma, Azad Hind, Prabhat Varta, Seven Sisters Post – and the TV channels, Tara Musik, Tara Newz, South Asia TV, and Channel 10, all under the umbrella of Saradha Printing and Publishing Pvt Ltd.
As Indian media blog the Hoot reports, “many senior journalists then suspected that media ownership was a matter of business strategy to establish the company’s credentials and also a bid to emerge as the mouthpiece of the major political party and perhaps get benefits in return.”
This view is supported by BBC journalist Sudhir Bhowmik, who says he left a job with the Saradha Group after he was told to “go soft on some leaders.”
It appears that Sen bought and built a media empire, allegedly on the behest of politicians of the ruling Trinamool Congress party, to play the part of a proganda-spinning machine for the government. This is no small feat – the net worth requirement of an applicant seeking to launch a news channel had been raised by the government from approximately $555,500 to $3,703,000, ostensibly to keep away “fly by night” operators away. But since Sen had already raised his financial portfolio, by dubious financial practises as we know now, he was able to take this step to becoming a media baron.
The curious case of the Saradha Group media empire gets murkier as the story unravels. In his letter to the CBI, Sen also claims to have been regularly blackmailed by Kunal Ghosh and Srinjoy Bose — two sitting Trinamool Congress members of the Upper House — into setting up his news channels. He also says he paid Ghosh $28,000 USD a month. Ghosh, now on the back foot, claims that he was simply a “salaried employee” and that he had “no authority to sign cheques.”
Sen’s use of the media empire to build political clout and protection is now being outlined by the national media. Influential members of West Bengal’s ruling Trinamool Congress party have been closely aligned with the media group. But some politicians are now distancing themselves from the group, despite having benefited from positive propaganda from its media outlets.
In India, which now has over 800 private satellite channels, media houses often favour particular political parties, and many are actually directed owned by politicians themselves. Amid growing unease, the Ministry of Information and Broadcasting has asked all channels to furnish details of their shareholding patterns and equity share. Both the ministry and the Telecom Regulatory Authority of India (TRAI) have been looking to ways to ensure pluralism and diversity in the Indian media, and curbing monopolistic growth. They feel tracking ownership patterns might be one way of finding out which groups and individuals are involved in unethical behaviour like corporate and political lobbying, biased analysis and forecast in the political arena and sensationalism of news. The ministry has made it clear that if it finds any media group in violation of its license agreement – including shareholding patterns – it is ready to cancel licenses.
Meanwhile, another unfortunate result of the scandal is that more than 1,400 journalists are out of jobs, while some of Sen’s Channel 10 employees have filed a complaint with the police over non-payment of salaries by Sen and Ghosh.
GLOBAL
The PS4′s Share Button Needs To Be All Or Nothing, Publisher Censorship Won’t Work
The PlayStation 4 is doing many things right. It’s ticking the boxes the developers want to see – it’s certainly powerful enough and that RAM is well received; it’s making gamers happy with great first party titles and solid third party support; and it’s making publishers happy – it’ll even offer publishers the ability to block which sections of the game players can share.
(The Sixth Axis)
EGYPT
How free are Egypt’s new voices?
Two years after the 2011 revolution in Egypt, a growing number of satellite TV channels are expressing a range of views – from liberal to ultra conservative. (BBC)
INDIA
Debate on free speech limits at Mario Miranda Cartoon Festival
After joining The Current in 1952, Mario Miranda drew his first political cartoon poking fun at Bombay’s home minister at the time, Morarji Desai. The cartoon delighted Miranda’s editor, DF Karaka, but annoyed Desai and elicited angry responses from the public. “That experience taught Mario the lesson that in India for an ambitious cartoonist to lampoon some political personage was to invite trouble,” wrote author Manohar Malgonkar in the book “Mario de Miranda”.
(The Times of India)
Resisting the impunity
The agency of journalists to push the envelope and the wider public’s demand for credible, trustworthy news sources are the positive development. On the flip side, there is a real fear of casting away the hard-won freedoms, and, as its extension, a vibrant, common forum for dialogue and debate is under severe strain. The challenges come from multiple sources.
(The Hindu)
Bollywood censorship to be relaxed
India’s all-powerful censor board is planning a lighter approach to Bollywood after decades chopping tens of thousands of film scenes, from onscreen kisses to violent endings.The Himalayan Times)
IRELAND
A crock of gold for libel tourists who bring cases to Emerald Isle
Ah, the good old law of unintended consequences pops up again. Who would have thought that Irish jobs could be affected by the passage at Westminster last week of the Defamation Act?
(Ruth Dudley-Edwards, Irish Independent)
MALAWI
President Joyce Banda waiting for advice on press pact
President Joyce Banda has said she is waiting for expert advice from the Attorney General (AG) and the Minister of Justice on whether to sign the Table Mountain Declaration. The President has come under fire from the press as well as human rights activists over her refusal to sign the accord which proposes abolition of insult laws in Africa.
(The Daily Times)
RUSSIA
A year into Russia crackdown, protesters try again
A year ago, Russia’s political opposition was on the rise and aiming for new heights at a demonstration on the eve of President Vladimir Putin’s inauguration. Instead, authorities cracked down, ending their tolerance toward the thousands of Putin opponents who presented him with the greatest challenge to his rule since he took over the country in 2000.
(Washington Post)
UNITED KINGDOM
Why Britain Refuses To Publish Amanda Knox’s Memoir
We flatter ourselves when we boast of mastery of the ironic style. Unlike literal-minded Germans and Americans, we are not ashamed to live behind masks and speak in riddles. (Nick Cohen, the Observer)
GLOBAL
The PS4’s Share Button Needs To Be All Or Nothing, Publisher Censorship Won’t Work
The PlayStation 4 is doing many things right. It’s ticking the boxes the developers want to see – it’s certainly powerful enough and that RAM is well received; it’s making gamers happy with great first party titles and solid third party support; and it’s making publishers happy – it’ll even offer publishers the ability to block which sections of the game players can share.
(The Sixth Axis)
EGYPT
How free are Egypt’s new voices?
Two years after the 2011 revolution in Egypt, a growing number of satellite TV channels are expressing a range of views – from liberal to ultra conservative. (BBC)
INDIA
Debate on free speech limits at Mario Miranda Cartoon Festival
After joining The Current in 1952, Mario Miranda drew his first political cartoon poking fun at Bombay’s home minister at the time, Morarji Desai. The cartoon delighted Miranda’s editor, DF Karaka, but annoyed Desai and elicited angry responses from the public. “That experience taught Mario the lesson that in India for an ambitious cartoonist to lampoon some political personage was to invite trouble,” wrote author Manohar Malgonkar in the book “Mario de Miranda”.
(The Times of India)
Resisting the impunity
The agency of journalists to push the envelope and the wider public’s demand for credible, trustworthy news sources are the positive development. On the flip side, there is a real fear of casting away the hard-won freedoms, and, as its extension, a vibrant, common forum for dialogue and debate is under severe strain. The challenges come from multiple sources.
(The Hindu)
Bollywood censorship to be relaxed
India’s all-powerful censor board is planning a lighter approach to Bollywood after decades chopping tens of thousands of film scenes, from onscreen kisses to violent endings.The Himalayan Times)
IRELAND
A crock of gold for libel tourists who bring cases to Emerald Isle
Ah, the good old law of unintended consequences pops up again. Who would have thought that Irish jobs could be affected by the passage at Westminster last week of the Defamation Act?
(Ruth Dudley-Edwards, Irish Independent)
MALAWI
President Joyce Banda waiting for advice on press pact
President Joyce Banda has said she is waiting for expert advice from the Attorney General (AG) and the Minister of Justice on whether to sign the Table Mountain Declaration. The President has come under fire from the press as well as human rights activists over her refusal to sign the accord which proposes abolition of insult laws in Africa.
(The Daily Times)
RUSSIA
A year into Russia crackdown, protesters try again
A year ago, Russia’s political opposition was on the rise and aiming for new heights at a demonstration on the eve of President Vladimir Putin’s inauguration. Instead, authorities cracked down, ending their tolerance toward the thousands of Putin opponents who presented him with the greatest challenge to his rule since he took over the country in 2000.
(Washington Post)
UNITED KINGDOM
Why Britain Refuses To Publish Amanda Knox’s Memoir
We flatter ourselves when we boast of mastery of the ironic style. Unlike literal-minded Germans and Americans, we are not ashamed to live behind masks and speak in riddles. (Nick Cohen, the Observer)
Brazil’s position in free speech’s world charts like Freedom House’s Freedom of the Press and RSF’s Press Fredom Index has consistently worsened in recent years, Rafael Spulder writes from Sao Paolo.