The World Sports Group (WSG), which owns the Indian Premier League (IPL) telecast rights, has reportedly admitted to receiving kickbacks from Sony Multi Screen Media (MSM).
Sony MSM is the official broadcaster of the IPL.
The South Asia head of WSG, Venu Nair, reportedly admitted before income tax officials that the money was indeed paid in an off-shore account by the MSM.
Reportedly, Nair claimed that money was also passed on to other beneficiaries.
Income tax officials suspect that one of beneficiaries of the payoff has ''political links''.
During the questioning, Nair admitted that no tax was paid in India on the transaction.
He also told taxmen during questioning that company lawyers said no tax was payable in India.
The WSG had originally bagged the television rights for 10 years and the MSM paid the money as facilitation fee to the WSG in order get the broadcasting rights.
The investigations by the income tax department into the funding of the IPL have led the authorities to tax haven British Virgin Islands.
On Thursday, the offices of the MSM in Mumbai’s Malad area along with the Khar office of the WSG and Pat Magnarella Management office in Bandra area were raided.
Nair''s confession will also help the I-T department to find out the link to Sony World for having accepting a payoff from the multi-million dollar IPL.
Since Sony World is a US listed company so Indian authorities are likely to get all the details related to IPL and the alleged irregularities without much trouble.
However, the WSG denied any wrong-doing on its part.
In a statement issued the company said: “With reference to a story in a section of the media today about allegations of impropriety by its executives or employees, wsg totally rejects unsubstantiated comments and innuendos about its business transactions and categorically states that they are unfounded and without substance.”
