Saregama India has confirmed to the stock exchanges that on the 3rd of November, officers of the Enforcement Directorate visited their Mumbai and Kolkata offices, “and collected copies of certain documents in relation to the royalty payments.” The company says that it has “The company has fully cooperated with the authorities in this probe” and at this stage, it “we do not envisage any material financial liability on account of the ED’s probe”.
Saregama was one of five music labels raided, which included T-Series, YRF Music, Saregama, Universal Music, and Sony Music, according to the Economic Times. According to the report, simultaneous raids were conducted at 10-12 locations. T-Series and YRF have said that these are surveys/fact-finding missions.
Non-payments of royalties has been an issue in the music business for many years, but there’s may be more to this raid than that: Moneycontrol.com reports that cases have been registered against these companies, alleging money laundering, under the prevention of money laundering act (PLMA). Note that none of the statements from the music labels have so far mentioned registration of a case under the PLMA.
Full statement from Saregama
“There are press reports of officers from Enforcement Directorate (ED) raiding premises of certain music companies including Saregama India for alleged non-payment of royalties and other alleged offenses in relation to the same. The company has fully cooperated with the authorities in this probe.
On 3rd Nov 2017, officers from ED visited Saregama’s Mumbai and Kolkata offices and collected copies of certain documents in relation to the royalty payments.
At this stage, we do not envisage any material financial liability on account of the ED’s probe and will keep the stock exchanges updated of any change in status or subsequent developments.”