NDTV claimed they sold dreams. IT said: No. It is a sham transaction, slaps ₹525 cr fine

Income Tax Dept. observes that a deliberate attempt was made by NDTV to conceal a $150 million investment

Income Tax Dept. observes that a deliberate attempt was made by NDTV to conceal a $150 million investment
Income Tax Dept. observes that a deliberate attempt was made by NDTV to conceal a $150 million investment

India’s Income Tax Department (ITD) has slapped a fine of Rs.525 crores on New Delhi Television Limited (NDTV) for fooling, concealing more than Rs.642 crore income earned through sham transactions in 2008. When caught for the unexplained money of how more than Rs.642 crores reached its kitty via Bermuda, NDTV claimed that they “sold a dream”. This curious answer was given to the ITD by NDTV by claiming that this unexplained money was through some inflated share transfer and dividend from a tax haven based firm.

18.1 It is pertinent to note that all agreements, whether pertaining to alleged subscription of stake by USBV in NNIH or alleged buyback by NDTV Networks BV, are invariably signed by NDTV itself.

The 14 page Income Tax notice was served to NDTV was on June 15, 2016. Till date it has not replied to the ITD. According to tax sleuths, NDTV staffers are saying that their head Prannoy Roy is unwell or staying at his mansion rejuvenating in South Africa etc. The Income Tax notice puncturing NDTV’s tax fraud is published at the end of this article.

The notice also shows an email trail between an auditor Vivek Mehra of Price Waterhouse Coopers (PWC) and Prannoy Roy on how to conceal this income. The emails are dated on or around 21st May 2008 and in that Vivek Mehra is advising Roy on how not to mention that NDTV is receiving this as a dividend or otherwise. The notice also reproduces seven email communications between Prannoy and others on how to creatively conceal the truth of this transaction. Vikram Chandra was also part of this elaborate scheme as he is listed as the CEO and the only employee in a shell company titled NDTV Networks PLC (NNPLC).

The hidden and unexplained money of Rs.642,54,2200 (150 million US $) was received from NBC Universal Inc and Universal Studios International BV. This money was routed through NDTV Networks International Holdings BV to ostensibly avoid paying income tax. See the graphic below:
Universal Studios investment into NDTV
Income Tax sensed a fraud in 2010 when this transaction was suppressed in the statements submitted to it. That Assessment Year 2009-10 claimed Rs.64 crore loss!

“Assessee’s theory of having sold a “Dream” to the investor has not been substantiated by any credible evidence as no details have been filed whatsoever for the so-called business projections and the basis of compulsion of the sale price of the share at the astronomical price of Rs.7015 which is 159 times of its face value of Rs.45. Needless to mention that the subject company whose shares were sold was incurring huge losses and there was hardly any worthy business to justify the above sale price.”

When caught NDTV said that they sold a dream and the dream later went bust, says the Income Tax notice detailing the questionable activities of the TV channel. NDTV boasts of a star-studded cast of media personalities such as Prannoy Roy, Barkha Dutt, Vikram Chandra, Nidhi Razdan and Sonia Singh who have been preaching ethics 24X7 to viewers for the past 25 years.

The notice further says that this deal was an active, deliberate and planned concealment and misrepresentation of facts and slapped 200 percent fine leading to Rs.525 crores for concealing the huge money received through Bermuda. The Income Tax directed NDTV to reply by June 22, 2016. Tax sleuths say that NDTV is requesting them for some more time till Prannoy Roy returns from his South African sojourn.

NDTV is already facing a FEMA (Foreign Exchange Management Act) notice of Rs.2030 crores and the matter is before the Adjudication forum of Enforcement Directorate. In Aircel-Maxis case, the Enforcement Directorate in its charge sheet details that NDTV also received around Rs.250 crores from Astro All Asia Networks, a subsidiary of Maxis during the scam period. The 2G Court had already issued a Letter of Rogatory to Britain in this regard.

NDTV Income Tax Notice June 2016



Note:
1. Text in Blue points to additional data on the topic.

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.

40 COMMENTS

  1. The issue is NDTV was with a focus on Congress and now that Congress is out Prannoy Roy feeling the heat needs a fall back position stake abode overseas!!! Did he have option? Yes he ought to have been balanced and not resorted to an agenda driven news channel !!!! One lives and learned!! !!

  2. Mr. Swamy is real hero and DESHBHAKT by exposing NDTV & Others….. He should be awarded BHARAT RATNA for his noble services to our beloved country. If we give little attention to many articles and reportings in media for last so many years we can easily intrepret that our country’s media is anti national preaching (falsely) human rights and similar connotations may be under pressure of outside/inside vested/anti-national elements.

  3. Feel pathetic about collapse of all systems in India.I don’t see a ray of hope of recovering this country.No morals.Only Money.People are scooping down to any extent for money.This country was ruined by the party which has ruled this country for most of the time till now.They have brought this country to this level.There is no real democracy here,whoever have political,muscle power can make any volume of money.This is not what our freedom fighters visualized and laid down their lives.If they are alive,they would feel ashamed of seing this kind of country.People are feeling shameful of this country.This disease looks to be spread even to Judiciary also.Some people who have done serious crimes also were aquitted after 15 years of trial which is a mystery.

  4. There’s some kind of ongoing attempt to hide GE’s role in this. Money came to NDTV through an NBCU subsidiary which at that time was under control of General Electric Company (GE). Why would a GE company help NDTV launder money unless it was a bribe from GE using NDTV as an intermediary.

  5. NDTV is an antinational company involved in tax theft also. No more mercy for Parnav Roy (So called person of high moral ground.). This notice is in perfect order.

  6. Its really pathetic to see NDTV’s Prannoy Roy and his other side which is facing lots of criticism in public due to their anti-national propaganda. No mercy should shown to these persons and stern action should be dealt with these guys even closure of NDTV media channel will be a wise option.

  7. This is beyond shocking. Prannoy Roy has always depicted himself as a decent person with a high sense of ethics and morals, and an incredibly talented media specialist. Now it turns out, day by day, that the man is a fraud, a cheat, a liar, and a traitor? Is making money by any and all means whether fair or foul matter so much for this b%#*¥$d? And he goes further to maximize TRP by dishing out propaganda pieces against India – stuff that spymasters and spin-artists of the ISI love?
    It is all very disturbing.

  8. Make them peo BJP – that’s the best punishment they can get.I am sure Pranoy Xtian Roy would be willing to suck any dxxk for saving his axx.

  9. Nathan….have you read the order fully? The notice was given more tahn 2 years back. Their annual report also shows this under “Contingent liabilities” section.

  10. The fraud by NDTV is not surprising. The private sector which cries of corruption amongst govt. and other public sector employees is most corrupt. Media houses are no exception to this. It is high time the govt. goes after them with stringent action instead of targeting the middle and lower income groups and pensioners. Most important is to make laws a d rules less conplicated. Temove all exemptoons increase chargeable income limit and bring down the slabs.

  11. Of course the Income Tax dept will go after NDTV because they have been tough on BJP unlike Times Now which is a pro-BJP channel. This story is similar to what is happening to AAP. Just vendetta by Modi & team.

    • raj you fool, they are looting man. Try and understand.
      This is worst than being under East India Company.

      All your tax paid money (if you had made a penny) you would understand is being looted by these traitors and more they are going all limits malign our country and its name.

    • Today it has become a fashion to blame Prime Minister Modi for anything whatever may happen anywhere in India. Look at Kejriwal. He even had the cheek to say that Modi may get him killed. I think this Mr. Raj belongs to the group of Somia devotees or an AAP Bhakt!

  12. Even the role of the auditor, in this case PwC needs to be investigated, if there is tax fraud the auditor has failed its audit, and action should be taken against the auditor.

  13. Good Exposure of the Crooks in Nehru Dynasty TV by Performance Guru Team. Our Harward Chidambaram as then finance minister put a lid on all investigation on NDTV including the FEMA violation of Rs.2030 crores. Good now things are coming to light.

  14. Congrats PGurus for a well substantiated expose. But NDTV has overdelayed its response to IT which itself warrants action. By the way the high moral ground it was standing on has collapsed.

  15. Now we know the real reason why the Barkhas and the other prestitutes are behind maligning the Modi’s government. These traitors should be put behind bars.

  16. Now, whom are they sending to argue the case Barkha?
    Hahahaha hahaha …..
    Sacch ka gala ghotney nikley they zute kahi ke! Congress ka TV channel! Take it off the air!

  17. Grt work PGurus. You’ve exposed these white collar criminals. …… we as citizens shud take this to public domain and spread this vigorously. ….. now for US TO ACT.

  18. The scan of the notice linked on scribd is not stamped or signed. I could type out a hundred notices, they have no validity till the competent authority signs and stamps them.

    An effort has been made here to make this look legitimate but unless there is a signed copy of the notice, this could just be a smear campaign

  19. fine but take it from me nothing will happen. if in 2:5 years modi govt can only issue a notice they will not be punished in my life time. losing faith in all this dramebaji. jai italy is there to protect all wrongdoings of these thugs

  20. Remember the relentless campaign against BJP and Modi before election by NDTV? You can’t hide will all that corrupt money, Bye Bye NDTV

  21. By this time action should have been taken IT Department because no ordinary citizens will get more than 15 days or one month extension. Govt is negotiating something!!!???

  22. Good show pGuru for bringing this to the attention of public.Crooks running english media both print and Tv are naturally silent.What a bunch of trash we have accumulated since “independence”

  23. What a shameless bunch of crooks preaching ethics to Indians day in and day out ….. NDTV is literally Cong B. what a shame

  24. There appears to be some mistake in calculating penalty. Tax sought to be evaded has to be collected + the penalty has to be collected. Where as in the case of the first item, 200% of tax sought to be evaded has been levied. And in the second case, it shows 100% whereas description shows as 200%.

    Bhupinderjit Kumar must read his order once again.

  25. Thank you. It is obvious why IT did not follow up all this while.
    Is dereliction of duty/ non action by bureaucrats a criminal offense under Indian law?
    Perhaps now, people of India, need no longer “Dream” that such people will go behind bars and that it will actually happen.

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