Things are unraveling quickly for NDTV and its shadow promoters. As per reports, during the Court Proceeding held on 31st Oct 2017 at the Delhi High Court, in the Writ Petition filed by minority shareholder Quantum Securities Private Limited vs Directorate of Enforcement and DG Investigation Income Tax & others etc. the Honourable Court was unhappy with the pace of investigations being initiated by the Enforcement Directorate (ED). The Court was of the view that since it is becoming apparent that there are strong allegations against influential persons, ED is deliberately delaying the proceedings and not bringing the investigation to its logical conclusion.
As per reports, during the proceedings, it was also pointed out from the affidavit filed by ED wherein ED has alleged linkage between a eminent UPA Minister and NDTV. The Court was of the view that it is important for the Directorate to take note and act on the matter and conclude the investigation in a timely and logical manner, howsoever high and mighty the persons allegedly involved maybe. The Court observed in detail that the ED and other agencies must act as the records and documents in their possession along with the Central Bureau of Investigation (CBI) are over 5 years old and no action had been taken as alleged by the petitioner and all agencies are protecting/ shielding NDTV and Promoters. Finally, the Honourable Court has directed the ED and the Director General (DG) Income Tax to file the latest report by the next date in Feb 2018. The HC order (attached at the end of this post) is self-explanatory and shows that ED had initiated Prevention of Money Laundering Act (PMLA) proceedings. Further, the extracts from affidavits filed by ED in Sept 2015 and Feb 2017 are revealing. They clearly allege nexus between an eminent UPA politician and one of the largest industrial houses. The relevant 2 paragraphs of the alleged nexus are reproduced below:
The entire set of 3 affidavits (DHC order, 2 ED findings) is provided at the end of the post.
Role of VCPL – How funds passed from Reliance to NDTV
The ED has determined that the exact amount of Rs. 403.85 was passed from Reliance Ventures to Shinano Retail Pvt. Ltd. to VCPL to RRPR Holding Pvt. Ltd., the holding company of NDTV. See Figure 2 below:
If you are wondering why it passed through so many entities, refer to how money gets layered as described in this post.
This investment came in with the following conditions:
- NDTV Four Holdings Limited, Mauritius will invest USD · 85 Million in NDTV Studios Pvt. Ltd…
- Use of USD 85 Million to the satisfaction of the lender
Of course, this is a clear case of laundering/ FEMA violations and the bigger issue is a criminal breach of trust under IPC as RRPR Holding P Ltd the Promoter entity received money by leveraging/ misusing a listed Company (NDTV) assets (USD 85 million). In fact, this also needs investigation and action by SEBI as shareholders funds have been used by Promoters.
In summary, the ED has filed an FIR under Prevention of Money Laundering Act (PMLA) and that has also been registered. Proceedings under the Foreign Exchange Management Act (FEMA) have also been initiated against the promoters of NDTV, Prannoy Roy and Radhika Roy.
The three attachments are listed below:
Figure 3 lists the list of respondents as referenced to in the Delhi High Court judgment below:
- Pegasus snooping: SC extends 4 weeks’ time for submitting the final probe report. A total of 29 phones were submitted for examination - May 20, 2022
- Appear before CBI within 16 hours after landing in India, Court tells Karti. CBI asked to give 3 days’ prior notice before arrest - May 20, 2022
- Chidambaram family’s CA to 4-day CBI custody. Vedanta Group also gave Rs.1.5 crore as loan to Karti firm, says CBI - May 19, 2022