Maa Bozell May Lose Accredition Over Default

Maa Bozell, a leading advertising agency, faces disaccreditation by the Indian Newspaper Society (INS) following default of payment to member publications to the tune of approximately Rs 3.7 crore.

Though the INS took a lenient view of the matter and agreed to Maa Bozell's request of staggering the money which was due to the publications, the agency is yet to meet its full obligations of the first instalment which was due on April 15 last.

"A substantial amount of the payment due to the INS has been made," said Chintamani Rao, Ma Bozell's Bangalore-based president.

Maa Bozell started defaulting on payment as one of its main clients, a Delhi-based domestic computer manufacturer, did not pay the ad agency money for the months of October, November and December 1996.

 

Owing to defaults by a few other clients also, Maa Bozell was unable to pay the INS which took note of the issue as far back as in January 1997.

Admitting that Maa Bozell had defaulted on payment, INS' secretary, Bhushan Jain said: "A notice of disaccreditation has not yet been served on Maa Bozell."

He, however, refused to discuss the matter in detail.

Advertising industry sources revealed that owing to a general slump in the market, many ad agencies had been defaulting on payments which are showing up in the INS' monthly revenue verification (MRV) reports.