ED raids music companies to probe non-payment of royalties to singers, lyricists

MUMBAI: The Enforcement Directorate on Friday conducted raids on top music labels, including T-Series, Saregama, Universal Music Group, Sony Music and Yashraj Films, in different cities as part of a probe into alleged non-payment of dues to artistes.

“Offices of T-Series, YRF Music, Saregama, Universal Music, and Sony Music have been raided by our officials across 4-5 cities,” a senior ED official told ET. “This is a coordinated action by ED.”

The simultaneous raids were conducted at 10-12 locations.

Music companies played down the raids, terming them as mere surveys and fact-finding mission.

“These are surveys, not raids,” said Vinod Bhanushali, president – marketing, media & publishing, at T-Series. “And we are cooperating with ED.”

A Yashraj Films spokesperson said ED officials visited the firm “on a fact finding mission to collect author/composer music documents to assess royalties payable to select artists”.

ED is seeking details of the financial transactions related to music rights from the music companies.

The agency had launched an investigation a few months ago after a popular singer filed an FIR in Delhi against industry bodies Indian Performing Right Society Ltd (IPRS) and Phonographic Performance Ltd (PPL) for non-payment of dues and irregularities.

The complaint, filed under the Prevention of Money Laundering Act, alleged that the music labels are not passing on royalties to artistes, including singers and lyricists, as prescribed under the Copyright Act.

Earlier in May and June, ED had recorded statement of noted lyricist Javed Akhtar, who was one of the complainants.

Calls made to Akhtar and heads of other music labels remained unanswered as of press time Friday.

Akhtar was elected as the new chairman of the revamped IPRS in April and in his statement to ED, he stated that he would make sure financial irregularities would never take place within IPRS.