Just a week back, the pgurus had disclosed an exclusive information that NDTV Prannoy Roy and his wife had illegally transferred around 53 crores to their personal accounts from NDTV shares. After the report went viral on social media, the NDTV had rebutted saying that the report was false and they were not involved in corruption.
But however now there seems to be slap on the face of NDTV and Prannoy Roy, as the Director and and Executive Vice Chairperson of the NDTV Mr. K V L Narayan Rao has confessed before the income tax about using Shell companies in Netherlands to transfer huge amount of money illegally into India violating the FDI norms.
Picture shows how money was transferred through different sources
Mr. K V L Narayan Rao has presented a 33 page hand written confession report which was recorded by the Income tax officers where he has clearly mentioned that NDTV had laundered huge money from Netherlands, Cayman Islands, British Virgin Islands by linking themselves with a GE group firm violating FDI norms.
The pages from 17 to 21 contains Rao’s admission that the Managing Editor of NDTV, Vikram Chandra had used a Shell company in London to route money into NDTV. Barkha Dutt and Sonia Singh are the Directors of the same Shell company and have maximum shares. He also admits that Shell companies all over the world were used to route money during P Chidambaram’s tenure as Finance Minister and money was transferred through tax heaven like Cayman Islands, British Virgin Islands.
Please visit the link to access Full Confession REPORT!
The Income Tax which verified the documents stated that “In this regard, it is pertinent to mention that the statement of Mr. K V L Narayan Rao, Director of the assesses company (NDTV) and the then Group CEO, was recorded under on oath under section 131 of the Act on July 23, 2015, copy of which is enclosed. In this statement, in response to question No.3, when asked about the rationale of incorporation of plethora of foreign subsidiaries, he admitted that the foreign subsidiaries were incorporated to circumvent the restriction imposed by Indian regulations, which confined the foreign direct investment in news channel companies to a maximum of 26 percent.” after which the Income Tax concluded that $150 Million was transferred from a USA based GE company illegally to NDTV through Netherlands.
Based on investigations and the confession by Rao the Income Tax reports filed on June 2016, showed that the NDTV had used Shell companies to illegally transfer fund which was an act of corruption under the Prevention of Money Laundering Act (PMLA). This shows Prannoy Roy and his wife were indulged in illegal money laundering violating FDI norms which could grant them a jail term of 3-7 years minimum.
The only question now is, the Government of India has to consider this case seriously and file a case against the NDTV and its owners who have misused their position for looting huge amount of money.
Courtesy: All figures and details were got from pgurus.com, who were the first to break the story.