The story has it that Kat was to perform for the awards but it wasn't for the live event. It was for the TV telecast only and was to be recorded after the ceremony ended. But when Katrina arrived, she learnt that Bebo had bagged the Best Actress award (Popular) for 3 Idiots. Though she was nominated for Best Actress for her performance in New York (Critics' Choice), Vidya beat her to it for Paa.
Kat felt it was unfair that her achievement of delivering the maximum hits in one year was going unrecognized. The organizers sensed her bad mood would jeopardize her stage performance. So, to avoid any conflict they pleased her with a special award- Entertainer of the Year.
While Katrina remained unavailable for comment, Sandeep Khosla of Screen told a leading daily, "It's true we created an award for Katrina but this was decided by the Screen jury. We had a special award to Katrina her for the three hits -- New York, Ajab Prem Ki Ghazab Kahani, De Dana Dan -- that she had last year and the jury thought she deserved it.
Katrina didn't insist or ask for any award. Nor did she throw any tantrums. She came and performed according to her commitment."