Music royalty case: ED records statement of Universal Music chief

The Enforcement Directorate is investigating the case registered against IPRS and PPL to determine revenue generated from sale of music rights, where it has been deposited

The Enforcement Directorate (ED) recorded the statement of Devraj Sanyal, managing director of Universal Music India, in connection with the money laundering case registered against the Indian Performing Right Society (IPRS) and the Phonographic Performance Limited (PPL).

The FIR was filed based on a complaint filed by singer Shubha Mudgal. (HT File)

On Wednesday, ED sources revealed that they were investigating revenue generated from the sale of the music rights and where this money was deposited. The first information report (FIR) registered with the Delhi police calls Sanyal one of the “common directors of IPRS and PPPL, who represent the music company’s interest.”

The Economic Offences Wing (EOW) of the Delhi police booked IPRS and PPL for allegedly not paying royalties to lyricists and composers. The FIR was filed based on a complaint filed by popular Hindustani classical singer Shubha Mudgal.

According to the amendment in the Copyright (Amendment) Act, 2012, 50% of the royalties collected by music companies must be given to lyricist and composers. “We are scanning the records of royalties collected by music companies since 2012,” said an ED officer.

“The IPRS and PPL directors acted illegally and solely at the behest of the music companies with the motive of trying to usurp the ownership of rights of authors and composers and thereby avoid payment of royalty to authors and composers, as well as divert and misappropriate royalties payable,” alleged the FIR.

The FIR states that despite the amendments to sections 18 and 19 of the Copyright Act, artistes have not received an “equal share” of royalties collected by music companies from various “commercial exploitations of creative work of aggrieved persons”.