Sony admits it is investigating its India operations

[Deepu]

Sony Corp has admitted that investigations are on at its India unit – Multi Screen Media (MSM) - for alleged corruption in business practices.

In an email sent out to media, Sony Corp today stated that "this investigation is ongoing… Sony Pictures is strongly committed to business ethics and the investigation of allegations of wrongdoing that might arise anywhere in the world. If wrongdoing is identified, we take appropriate action."

The Sony Pictures Entertainment email was sent out in response to a Bloomberg report on alleged business malpractices at MSM based on emails leaked following the hack on the electronics and entertainment giant's IT infrastructure late last year.

Indian Television Dot Com | Sony admits it is investigating its India operations

 

[DashMajor]

Thanks to hackers SONY India facing the heat now.

 

[NinadG]

"Its really sad that the higher subscription fee collected from the Indian Consumers is being further siphoned by these Pay TV Broadcast companies / Channel Aggregators for kickbacks & bribing......"
Indian Television Dot Com | Sony admits it is investigating its India operations

 

[Technoglitch]

some persons in the company are responsible and SONY can't keep track of each and everything always. So i think SONY would send some representatives from the main office to keep all under the tracks.

 

[DashMajor]

All this activity after SONY's server get hacked and their mail gets leaked. No corruption can be concluded without higher authority and in that case also higher authorities are involved. Basically Indian Management can't make a corruption of a single penny because funding source of SONY is outside.

 

[Technoglitch]

The corruption is , the indian management brought the content at higher price that is shown to the higher authority and then a percentage of that amount is shared by the people of Sony indian management and content producer. Basically the higher amount is on paper only not in transaction.

 

[DashMajor]

And definitely Finance and Auditing department of SONY must knows about this, how they can approve money without knowing anything ?

 

[Technoglitch]

this is simple, just quote the higher price to the management, procure the amount and the guys in Indian management would transfer the money to the content producer who would then return the amount to Sony guy which would benefit both, Now you understand this!

 

[aumnamonarayan]

this is simple, just quote the higher price to the management, procure the amount and the guys in Indian management would transfer the money to the content producer who would then return the amount to Sony guy which would benefit both, Now you understand this!

Its not like that. If suppose A is the person who heads procurement then A quotes to the management that i need 30 crore to buy rights of a movies, A gets that and pays to the distributor , all this is shown in balance sheet of company. Now as A is involved in corruption with the distributor so actually the price paid to distributor is already inflated but only A and distributor know it and inturn Distributor is paying 35 percent of the amount as kickback to A. Soon company's balance sheet all is fine but A has got the black money from distributor once deal is done

 

[DashMajor]

Its well documentary about purchase amount of Dhoom 3 and Bhootnath. Sony bought D3 for 75 crore and Bhootnath at 25 crore.

During D3, media report said some other big broadcaster wants the rights quoting for 100 crore and pressure on Sony to sustain YRF's movie.

Even all analyst were shocked when Sony bought Bhootnath for 25 crore and Bachchan personally made from it despite of not a part in production. One thing is for sure such dealing is not new from years they're doing this.

Now I think Sony lost the opportunity to create a history to purchase PK at 100 crore, might be their producer missed the chance to sign such a profitable deal. Let's see what's the new bidding coming from Sony's side now or they become out from movies division too