The CBI has booked NDTV, its promoters Prannoy Roy and wife Radhika Roy besides former CEO Vikramaditya Chandra and unknown public servants for allegedly violating Foreign Direct Investment (FDI) rules between 2004 and 2010. The NDTV has denied the CBI allegations.
The accused entity and individuals have been booked on charges of criminal conspiracy, cheating and corruption, according to the FIR. The agency on Wednesday 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.
According to the FIR, NNPLC allegedly got approval from the Foreign Investment Promotion Board (FIPB) board in violation of FDI rules in 2009.
NNPLC received total FDI worth USD 163.43 million and invested the amount in various NDTV subsidiaries through a web of complex transactions.
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 and Mauritius among others.
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.
It is alleged that these transactions are sham and funds are invested by unknown Public Servants through NDTV Ltd and later laundered back to India through multiple layers of complex transactions and shell companies.
“NDTV Ltd through its promoters viz Prannoy Roy and Radhika Roy, KVL Narayan Rao (since expired), Vikramaditya Chandra had entered into criminal conspiracy with unknown public servants with the object of bringing tainted money of unknown public servants through a web of complex transactions through the FDI route,” a CBI Deputy SP who is the complainant in the case alleged.
The NDTV came out with a statement saying. “Despite a series of cases in which the investigation is deliberately stalled, agencies have found no evidence of any corruption by NDTV. Prannoy and Radhika Roy, the founders of NDTV, as also the company, have cooperated in all matters filed against them.
“As part of the continued persecution of free press, a new CBI case has been filed about a $150 million investment in NDTV’s non-news business by NBCU, then owned by General Electric, a massive American conglomerate. 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.
“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 added.