MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has admitted a petition filed by Sony Pictures Networks India (SPNI) against Tata Play and allowed an independent audit of the direct-to-home operator's systems. The audit date will be set within ten days, and the matter will be heard again on December 17. Sony Group Corporation-owned SPNI runs 28 channels, while Tata Play, backed by Tata Sons and The Walt Disney Company, has 17.5 million subscribers.

The dispute arose after SPNI, dissatisfied with an earlier audit, invoked Telecom Regulatory Authority of India (Trai) rules that permitted a second audit. It appointed MGB & Co after Tata Play objected to its first choice, KPMG Assurance and Consulting Services. Under Trai Regulation 15(1), distribution platforms must conduct an annual audit of their subscriber management system and conditional access system through empanelled auditors. Regulation 15(2) allows a broadcaster to order an audit if it is dissatisfied with the distributor's annual audit.

The case was heard by TDSAT chairperson Justice DN Patel. Senior advocate Amit Sibal represented SPNI, while advocate Meet Malhotra appeared for Tata Play. There was also a disagreement between the parties regarding the wording of a confidentiality clause. Trai's November 2023 notice inviting expression of interest for empanelment of auditors requires the audit agency to sign a confidentiality agreement with the service provider, in this case Tata Play, to the latter's satisfaction.

TDSAT ruled data must be preserved until 7 days after audit is done or final report is prepared, whichever is later. Auditor's copies will be destroyed, while Tata Play must retain original data until case is concluded and present it to tribunal. SPNI and Tata Play have been clashing since May.