DAVP removes The Pioneer from its list of newspapers
More than 80 per cent of the paper’s revenue comes from DAVP
In a decision that could send The Pioneer into major financial crises, DAVP has removed the publication from its list of newspapers for placing government/PSU ads. The paper’s more than 80 per cent of the revenue comes from DAVP, which is the government agency responsible for issuing government/PSU advertisements.
One of the allegations against The Pioneer is that it has been overstating its sales figures to DAVP and registrar of newspaper Industry (RNI) to extract more revenue from the government. In October 2020, the then CEO of the newspaper had informed DAVP that it prints and sells 4,50,000 copies of English and Hindi Pioneer every day, which according to one of the directors, was highly exaggerated. Disputing the claim, the suspended director had said that the company prints only about 10,000 copies every day.
It is understood that IRP, appointed by the NCLT on January 19, 2021, following a verdict against the board of directors for non-payment of dues to its financial and operational creditors, had also pointed out in its forensic report the company’s claim about higher circulation is untrue.
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