IPO-Bound Ullu Digital Under The Scanner For Pornographic Content, Violation Of Rules

Amid the Centre’s crackdown on multiple OTT platforms for publishing obscene and vulgar content, multiple government bodies are now probing the IPO-bound streaming platform Ullu Digital for allegedly selling “pornographic” content using school children.

As per an NDTV report, the Securities and Exchange Board of India (SEBI), the Ministry of Corporate Affairs, and the Ministry of Electronics and Information Technology (MeitY) have launched a probe against Ullu after receiving complaints against the OTT platform.

The development comes weeks after the National Commission for Protection of Child Rights (NCPCR) wrote to MeitY to take action against Ullu, saying that the app, available on both the Play Store and the iOS, contains “extremely obscene and objectionable” content, which is accessible even to children.

The child rights panel had further sought a response from the ministry within 10 days.

NCPCR Chairperson Priyank Kanoongo also wrote in the letter, “The app is easily accessible on Google and Apple and does not seem to have any KYC requirement for downloading or viewing any content it makes available to its private group.”

Besides, he said, “It has further been alleged that there are specific shows that target school kids with explicit sexual scenes and plotlines.”

Reportedly, Kanoongo also wrote to Priya Chatt, head of public policy at Google and YouTube, on this matter. 

As per the NDTV’s latest report, Uday Mahurkar, founder of Save Culture Save Bharat Foundation, has asked SEBI and BSE to probe Ullu for multiple violations. He reportedly alleged that the OTT platform, in its draft papers, had acted in contravention of various laws, including securities laws and regulations such as SEBI Issue of Capital and Disclosure Requirements.

“Ullu Digital Limited has provided wrong and misleading information regarding the history of criminal cases against its promoters. Ullu promoter Vibhu Agarwal has been accused of outraging the modesty of a female employee of Ullu and a case has been registered in Mumbai,” Mahurkar was quoted as saying in his letter. 

He also noted that Agarwal has been in the news for producing “sexually perverted” content and there are several legal cases filed against the Ullu app in the Madhya Pradesh High Court and the Supreme Court.

It is pertinent to note that last month Ullu filed its DRHP with the BSE SME for an IPO, which comprises a fresh issue of 62.63 Lakh shares but has no offer for sale (OFS) component.

The platform plans to use the net proceeds raised via the public offering to meet its expenses for the production of new content and for purchasing international shows, among others.

As per Ullu’s DRHP, its founder Vibhu Agarwal holds a 61.75% stake in Ullu while Megha Aggarwal holds 33.25%. 

A SEBI official has informed the publication that the complaints the market regulator was looking into the complaints against Ullu. Meanwhile, one such complaint, filed by Abhay Shah, who is the coordinator of Swachh Cyber Bharat, has reached the Registrar of Companies. 

“The company is engaged in advertisement, production and distribution of illegal content which is obscene, profane, lascivious, sexually explicit pornography in spoken language and graphic display,” Shah reportedly said in his letter. 

Some of the top shows on the Ullu platform are titled ‘Kavita Bhabhi’, ‘Palang Tod’, ‘Wife in a Metro’, ‘Charamsukh’, and ‘Chahat’.

As per the report, Ullu and many other Indian apps dealing with adult content operate out of Meerut, where the films are directed by youngsters working from hotel rooms or rented apartments on budgets of around INR 1.25 Lakh to INR 2.5 Lakh per episode. 

Ullu posted an operating revenue of INR 93.1 Cr in FY23, which doubled from INR 46.8 Cr in the previous fiscal year. Its profits also jumped to INR 15.1 Cr from INR 3.9 Cr in FY22.