The Income Tax Department (IT) has finally launched criminal prosecution proceedings against New Delhi Television (NDTV) and its promoters Prannoy Roy and Radhika Roy for tax evasion. The show cause notice was served to the TV channel for tax evasion of around Rs.800 crores ($119 million) and evasion personally by Roy and his wife for Rs.30 crores ($4.5 million) each. As per the Income Tax, criminal prosecution laws charges are involving an imprisonment of up to seven years.
The top officials in the Finance Ministry got an earful from the Prime Minister Narendra Modi and key officers handling NDTV’s tax evasion were restored to their old positions.
The 36-page show cause notice served to NDTV, Prannoy Roy and Radhika Roy says that they will face the violation of Income Tax Act provisions under Section 276C, 277, 278 and 278B. These stringent provisions for criminal prosecution are imposed on the tax evaders that could lead to rigorous imprisonment of up to seven years with fine. The charges are also for false statements, abetment of a false return, and suppression of taxable income.
Prannoy Roy was knocking on all doors of Lutyens Delhi to suppress the Income Tax’s criminal prosecution and managed to get his buddies in the Finance Ministry to transfer the senior Income Tax officers handling the NDTV’s files. Even the Assessment Officer of NDTV cases was shifted by the crooked people in Finance Ministry.
BJP leader Subramanian Swamy complained to Prime Minister about these transfers. The top officials in the Finance Ministry got an earful from the Prime Minister Narendra Modi and key officers handling NDTV’s tax evasion were restored to their old positions. All these officers were victimized by Finance Ministry’s top Babus for suggesting criminal prosecution.
The clock has started ticking for Prannoy Roy. He has to face the criminal prosecution and has to take bail when a charge sheet is filed. Now apart from the liability of paying more than Rs.800 crores, he and his wife have to face criminal prosecution for tax evasion. The IT department has already attached 30 percent of NDTV’s 30 shares, whose current value is below Rs.80 crores. These shares of NDTV were owned by the shell firm RRPR Holdings. RRPR means Radhika Roy Prannoy Roy – A classic fraud of floating a shell firm exposing the Indian corporate culture.
Recently NDTV sold some shares of one of its subsidiaries to the building owner due to non-payment of rent of its headquarters. With the latest action of launching criminal prosecution by Income Tax against the company and owners Prannoy Roy and wife, more troubles are on the anvil for the corrupt TV channel and its money laundering tax evading owners.
1. The conversion rate used in this article is 1 USD = 67.32 Rupees.
 Income Tax fines Prannoy Roy and wife Rs.30 crores each for hushing up income in 2010-11 – Nov 20, 2017, PGurus.com
 Arun Jaitley’s Finance Ministry transfers top Income Tax Officers probing NDTV frauds – Jan 8, 2018, PGurus.com
 Shocker! The IT Officer who exposed NDTV Tax frauds transferred – Mar 13, 2018, PGurus.com
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