In a letter dated March 2009, KBC said it terminated the joint venture because of programming and “poor financial performance”, but Mr Sethi said that this was caused by a weak and unreliable signal.
KBC had issued a public tender for the provision and installation of digital equipment for the Digital Terrestrial Television platform, with Mr Sethi’s firm among those invited to bid.
The tender was later awarded to China’s Star Times, which entered into a digital television memorandum of understanding with KBC, but which Mr Sethi considers a breach of their agreement.
KBC however argued that it was entitled to terminate the agreement after Mr Sethi failed to provide films and other programmes in sufficient quantity.