Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,856.80-80.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

NDTV's Roys, former CEO booked for alleged FDI norms violation

The agency has also booked the media outlet's former CEO Vikramaditya Chandra under charges of criminal conspiracy, cheating and corruption, they said.

PTI|
Updated: Aug 21, 2019, 04.33 PM IST
0Comments
Getty Images
7
Prannoy Roy
NEW DELHI: The CBI has booked NDTV promoters Prannoy Roy and Radhika Roy and others for allegedly violating foreign direct investment (FDI) rules in a 2007-09 investment, an allegation denied by the company.

Besides the Roys, the agency registered an FIR against then CEO Vikramaditya Chandra as well as unidentified government officials on charges of criminal conspiracy, cheating and corruption, officials said on Wednesday.

On Wednesday, a CBI team conducted searches at Chandra's residence, officials said.

Under the CBI scanner are investments made by NCBU, a General Electric company at the time, in Network PLC (NNPLC), an NDTV company incorporated in London on November 30, 2006.

The CBI has alleged that NNPLC in 2009 got approval from the Foreign Investment Promotion Board (FIPB) board in violation of FDI rules.

It said NNPLC received total FDI worth USD 163.43 million and invested the amount in various NDTV subsidiaries through a web of complex transactions.

In a statement, NDTV strongly denied the CBI's allegations.

"NDTV and its founders have full faith in India's judiciary at this crucial time and remain committed to the integrity of the company's journalism. Attempts to silence free and fair reportage through malicious and fabricated charges will not succeed. This is not about a company or individuals but about a larger battle to maintain the freedom of the press, something which India has always been renowned for," it said.

As part of "the continued persecution of free press", it said, a new CBI case has been filed about a USD 150 million investment in NDTV's non-news business by NCBU, then owned by General Electric.

"The case makes the ludicrous charge that the transaction, declared to all relevant authorities in the US and India, laundered money for unknown public servants," it said.

The FIR is an outcome of a preliminary enquiry registered by the agency in 2016, the CBI officials said.

It is alleged that during May 2004 to May 2010, NDTV floated around 32 subsidiary firms all over the world, mostly in the tax havens of Holland, the United Kingdom, Dubai, Malaysia, Mauritius etc.

The CBI said most of these companies allegedly had no business transaction and were meant for financial transactions to bring funds from abroad.

Terming the transactions a "sham", the agency alleged that funds were invested by unidentified public servants through NDTV and laundered back to India through multiple layers of complex transactions and shell companies.

"Proceeds of corruption of unknown public servants was invested through NDTV Ltd," it alleged.

Also Read

DPIIT kickstarts exercise to ease FDI norms more

CAIT seeks action against Flipkart, Amazon for FDI norms violation

New FDI norms unlikely to meet objective of higher inflows

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

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service