In a big setback to New Delhi Television (NDTV), Delhi High Court (HC) on Tuesday quashed the stay order given by Income Tax Appellate Tribunal (ITAT) stopping the Income Tax Department from levying a fine of Rs.525 crores ($80 million). The Division Bench comprising of Justice Ravindra Bhat and Justice Najmi Waziri upheld the Income Tax decision to fine Rs.525 crores on NDTV for tax evasion in 2008. The HC also said that the stay order given by ITAT was totally wrong and the Tribunal had exceeded its powers.
It is still intriguing as to why GE put money in NDTV through subsidiaries and that too through tax havens.
NDTV obtained a stay from ITAT on September 2016, when Income Tax found that the TV channel had illegally routed money through Bermuda. Around Rs.642 crores ($98 million – $150 million in 2008) was routed in 2008 through US giant General Electrical (GE) subsidiary in USA via Bermuda and NDTV received this money through its shell company registered in Netherlands. This dubious deal took place when P Chidambaram was the Finance Minister and many Income Tax officers who challenged this deal were punished by the Congress regime.
At last Income Tax in June 2016 slapped fine of Rs.525 crores ($80 million) for this illegal routing of money and hushing up of money flow. NDTV even claimed to Income Tax that they tried to sell a dream and it did not materialize. Later NDTV’s senior staffers Vikram Chandra and K V L Narayan Rao confessed to Income Tax about the illegal money routing from GE’s subsidiary in USA via Bermuda and Netherlands.
It must be noted that in those days (2008), GE was trying to make a deal worth Rs.16000 crores ($2.432 billion) with Indian Railways for building electric locomotive engine and it collapsed after officers found forgery of documents. Those days Chidambaram and Planning Commission Deputy Chairperson Montek Singh Ahluwalia were supporting this deal. GE was a diesel locomotive manufacturer and was not eligible to bid for electric locomotives. It is still intriguing as to why GE put money in NDTV through subsidiaries and that too through tax havens.
Delhi High Court’s Order is going to create huge problem for NDTV as it has to pay Rs.525 crores. NDTV is now facing a serious cash crunch and several staffers have been retrenched in the past few months. Moreover NDTV’s move to compound the Enforcement Directorate’s fine of Rs.2030 crores ($309 million) was also rejected by RBI. These developments are expected to challenge even the day-to-day running of the TV channel. Is the denouement near?
Note:
1. The conversion rate used in this article is 1 USD = 65.78 Rupees.
2. Text in Blue points to additional data on the topic.
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Dr Swamy ki Jai Ho !!???
Sir, The time has come to nail P.C.’s coffin with the last Nail.With the exposure of the property worth a million pounds and other properties all over the world impounding of the family’passports would be in order. I fear the birds may fly oyt of India soon. This wouuld automatically deprive of cronies like NDTV and others either to surrender or escape. Prannoy and his wife are already planning a long holiday in their house in South Africa.
Congratulations Dr Swami. You’re doing a great service to mother India by ensuring closure of NDTV
Pgurus.. did you guys try exploring adding stock information with some google finance and yahoo finance APIs.. which will make sure this news sits on NDTV finance page. That way lot more people will correlate the news with the stock dip and hurt them more. Currently there is dip of 3.4% but I presume this news should tank the stock by more than 50%.
But it seems there are some ‘TROJAN HORSES planted by UPA’ in the NDA Government
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Effective penal actions do not seem to have been taken against the ‘top level’ & mighty
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Pickpockets are arraigned while dacoits go Scot free – is the impression that is created
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Bhujbal is jail while the corruption king & his family in Maharashtra is enjoying PM’s patronizing. He has even been endowed with Padma Bhusahan.
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Raja & Kanimozhi had to suffer jail term. But Chidambaram, Marans are roaming free
The concerned personnels in ITAT who stayed the fine on NDTV should do mass suicide after hearing this order or should join NDTV and work for them .
NDTV, whose body language is always the antinational one. This channel has been in the minds of majority people of India for their pro Pakistani leanings. Why did HE has put money into the shell companies in tax heavens is to be investigated. I always doubt many big sharks in FM who are protecting these antinational elements also to be probed. FM must verify these elements and weed them out at the earliest.
Congratulations Dr Swami. You are an inspiration! I personally know two people whose lives you changed forever… For the better.