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NDTV drops 6% as CBI books promoters for FDI norm violation

“NDTV strongly denies these allegations and is seeking legal advice in this regard.”

ETMarkets.com|
Updated: Aug 22, 2019, 03.43 PM IST
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CBI
The CBI alleged that the Roys conspired with public servants to bring back tainted money as FDI through a web of complex transactions.
NEW DELHI: Shares of NDTV dropped 6 per cent in Thursday’s trade after CBI booked promoters Prannoy Roy and Radhika Roy, among others, for allegedly violating foreign direct investment (FDI) rules in a 2007-09 investment, a charge denied by the company.

“NDTV strongly denies these allegations and is seeking legal advice in this regard,” the company told BSE.

The scrip fell 6.33 per cent to hit a low of Rs 34 on BSE.

The CBI alleged that the Roys conspired with public servants to bring back tainted money as FDI through a web of complex transactions. The agency has also registered an FIR against unknown public servants.

The agency claimed that funds were invested by unknown public servants through NDTV and later laundered back to India through layers of complex transactions and shell companies. “Proceeds of corruption of unknown public servants was invested through NDTV Ltd,” it said in the FIR.

The case makes the charge that the transaction, declared to all relevant authorities in the US and India, laundered money for unknown public servants. According to the CBI, NDTV floated about 32 subsidiaries in overseas tax havens between May 2004 and May 2010 and that many of them had no business transactions and were meant only to route funds from abroad.

The shares of the company closed 3.58 per cent lower at Rs 35 on BSE.

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