The Central Bureau of Investigation CBI) on Monday searched the office and homes of NDTV news channel promoters Prannoy Roy and his wife Radhika Roy in connection with an alleged bank fraud causing financial losses to a private bank. Searches were conducted at four places in Delhi and Dehradun in Uttarakhand. The NDTV called the raids a “witch-hunt” based on the “old and false accusations”.
The news network in a strongly-worded statement said, “NDTV and its promoters will fight tirelessly against this witch-hunt by multiple agencies. We will not succumb to these attempts to blatantly undermine democracy and free speech in India.”
The statement added, “It is clearly the independence and fearlessness of NDTV’s team that the ruling party’s politicians cannot stomach. No matter how much the politicians attack us — We will not give up the fight for freedom and the independence of media in India.”
The CBI raids come days after NDTV anchor Nidhi Razdan had an on-air verbal tiff with BJP spokesperson Sambit Patra, after he alleged that the news network was following an “agenda”, during a debate over the new central notification on cattle trade and slaughter. The BJP leader was told to leave the programme.
The CBI has registered a case against RRPR Holding pvt limited — the promoter company of the English and Hindi news channels — Prannoy Roy, his wife Radhika and unidentified officials of ICICI Bank for criminal conspiracy, cheating and corruption. The CBI sleuths conducted searches at Roy’s south Delhi residence in Greater Kailash-I and his house in Dehradun for the “loss of Rs48 crore to ICICI Bank.
The CBI has alleged that RRPR Holdings took a loan of Rs375 crore at the rate of 19 per cent per annum from ICICI Bank to repay the borrowing from India Bulls. The promoters of NDTV pledged their entire shareholding in NDTV as a collateral to ICICI for this loan, it alleged. This pledging of shares was not reported to the SEBI, stock exchanges and the Ministry of Information and Broadcasting, according to the CBI. Such concealment was allegedly done as a creation of more than 61 per cent voting capital which was in violation of Section 19 (2) of the Banking Regulation Act. It should not be more than 30 per cent. An interest waiver of 10 per cent was given by ICICI. According to the Act, “No banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent. Of the paid-up share capital of that company or thirty per cent. Of its own paid-up share capital and reserves, whichever is less.
The case was registered by the agency’s banking fraud division. The officials said the office of RRPR Holding, the promoter of the listed broadcaster, was also searched. “Searches were conducted (on Monday) at four places, including Delhi and Dehradun,” CBI spokesperson RK Gaur said.
The CBI move triggered sharp reactions from some journalists, politicians and commentators.
Senior Congress leader and Deputy leader of Opposition in the Rajya Sabha, Anand Sharma has criticised the Centre over the CBI raids on journalist Prannoy Roy’s residence by saying that a “blatant misuse of power” was taking place in the country. Sharma alleged that the raids showed that a “blatant abuse of power” was taking place. “Centralisation of decision-making is happening at the Centre. The media and the other voices of dissent are being muzzled. A warning is being sent to the media outlets to fall in line or face a similar fate,” he said.
Congress leader and former Information and Broadcasting Minister Manish Tewari said the raids were a “direct assault” on the freedom of the press. West Bengal Chief Minister Mamata Banerjee termed the raids as a “disturbing trend” and described Roy as “highly respected and reputed” and said the trend of conducting such search operations was “disturbing”. “Shocked at the raids on Dr @PrannoyRoyNDTV’s house. He is highly respected and reputed. Disturbing trend,” Banerjee tweeted.
Delhi Chief Minister Arvind Kejriwal said it was an attempt to “silence independent and anti-establishment voices”. Former Uttar Pradesh Chief Minister and Samajwadi Party leader Akhilesh Yadav retweeted Banerjee and other tweets condemning the CBI raids.
But Union Information and Broadcasting Minister M Venkaiah Naidu rubbished the witch-hunt allegation. “law is taking its own course. This Government does not believe in interfering. If somebody does something wrong simply because they belong to the media, you cannot expect the Government to keep quiet.”