Bad times for NDTV!! Notice worth Rs 4000 crore served by ED for FEMA violations and Rs 10,000 crore defamation suit by Reliance

In a big setback to news channel New Delhi Television Limited (NDTV) and its owners Prannoy Roy & Radhika Roy the Enforcement Directorate (ED) has issued a show cause notice to NDTV for alleged violations of the Foreign Exchange Management Act (FEMA) law amounting to over Rs 4,000 crore

According to the statement by ED, the suspected contraventions of the Foreign Exchange Management Act relating to foreign direct investment received by NDTV is to the extent of Rs1,637 crore and overseas Investment to the tune of Rs 2,732 crore which means company has received Rs1,637 crore as FDI and has made investment of Rs1,637 crore overseas.

The show case notice, apart from the NDTV has been issued to the channel’s founders and promoters Prannoy Roy and Radhika Roy and journalist Vikram Chandra.

Along with NDTV, the other companies of NDTV group which have come under the scanner of ED for violating norms of FEMA include are Ms NDTV Lifestyle Holdings Ltd (now Ms Lifestyle and Media Holdings Ltd), Ms South Asia Creative Assets Ltd, Ms Astro Overseas Ltd and Ms NDTV Imagine Ltd (now Ms Turner General Entertainment Networks India Pvt Ltd).

“The investigation revealed that NDTV received FDI of Rs725 crore and that only CCEA (cabinet committee on economic affairs) was competent to permit FDI in excess of Rs 600 crore, in the case of NDTV but no CCEA approval was taken. Documents of FIPB section also projected FDI differently as Rs 585 crore (USD 130 million at Rs 45/USD). However, FDI finally received by NDTV was USD 163 million. FDI was projected as below Rs 600 crore as part of larger conspiracy”, said ED statement.

In addition to this, the agency also reported there are offences to the tune of Rs 1,378 crore in respect of delays in reporting and filing information with the RBI and delays in allotment of shares.

“The offences identified in respect of FDI include substantive contraventions of Rs 319 crore by NDTV Ltd through contravention of Press Note 1 of 2005 and downstream investment of Rs 138 crore without FIPB approval. The remaining contraventions relate to delays under FEMA in respect of allotment of shares within permissible limit of 180 days and delays in filing information with RBI and reporting requirements,” ED statement said.

Apart from this, it has also come to forefront that NDTV has been seud by Anil Ambani’s Reliance for Rs 10,000 Crores for Rafale Coverage

However NDTV has rejected all the charges saying it has not violated FEMA regulations and it is being targeted for its fair and independent journalism and that its persecution is intended to signal to other media that unless they fall in line, they will face similar consequences.

We all know, NDTV has always misused the authorities and institutions according to its will under their favourite government in power. Even in the income tax case evasion filed earlier against Prannoy Roy, Roy has tried his best to save himself. From influencing his known officials in the finance ministry for transfer of all the officers handling his case to threatening the Prime Minister Narendra Modi by writing a letter that “If NDTV will suffer than nation will suffer” he has done all. But to his bad luck nothing worked out

NDTV should now understand that this is not going to happen anymore. It had to bear the fruits of all its wrongdoings. NDTV owners Prannoy Roy, Radhika Roy and its promoters must know that this is Modi era in which no corrupt can escape. Every corrupt person and party has to pay back to nation whatsoever they have looted from the nation.

Source: Indian Express

Economic Times