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:
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.
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Pranoy Rot is Hindu name to hide his Christian back ground - he being the son of Mary and his sister Aryndati Roy also being Christian masquerading under Hindu name and destabilizing INDIA , both with extra territorial funding to further the cause of Christianity which on hand preaches universal brotherhood but on another permits colonial racist usurpation of land, mis-appropriation of natural resources by Caucasians. Nation-state is anti-CHristian . Instead of furthering the interests of Indian Christians and fighting for their settlement rights anywhere as part of universal brotherhood, they have been targeting India and its majority. WE IMPOTENT PEOPLE TOLERATE. High time such NAQLIs are exposed and beheaded. Italian Mafia is strongly behind all scams, loots, anti-hindu activities and destruction of India
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!! !!
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.
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.
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.
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.
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.
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.
True.
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.
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.