NDTV attempts to malign the Income Tax Dept. before SC hearing on Monday in 525 crores matter
In a detailed and explosive filing made before the Delhi High Court (HC), an astonishing fact has come to our exclusive knowledge. What / where is NDTV involved in the 2G scam? As the document below shows, Enforcement Directorate (ED) has submitted before the Delhi HC that it has sent a Letters Rogatory/ legal request on the Orders/ Directions of the 2G spectrum scam special court relating to the Aircel – Maxis matter to the United Kingdom Govt for details on NDTV Networks Plc UK and the response is awaited. What is very strange is that ED has not followed up or received any details as this was sent on 01.12.2015 to the UK authorities.
Further, the document reveals (contrary to NDTV communication) that ED has found contraventions totaling to Rs.2030 crores of FEMA Act against NDTV, Prannoy Roy, Radhika Roy, Narayan Rao and another NDTV company called NDTV Studios Ltd. In the document below, ED has listed a long list of contraventions for which show cause notices have been issued. However, NDTV and Roys continue to remain in denial mode and defiant on the matter to the extent that they have not even carried out full disclosures of all the FEMA violations against them or the fact that a Letters Rogatory has been sent to the UK Authorities. This is a serious breach of SEBI Disclosure Regulations.
The Affidavit is extremely damaging against the Roys (personally) also as it goes on to state that ED is investigating their alleged fraudulent and clothed loan agreement whereby they sold their controlling stake in NDTV in a covert manner to Vishwvapradhan Commercial Pvt. Ltd. (an entity funded by Reliance Ventures Limited). However, what is really damning in this expose by ED is the fact that while the Roys did this covert sale, they leverage the listed company (NDTV) money totaling USD 85 million to their personal benefit. As is obvious, this will surely attract Prevention of Money Laundering Act (PMLA) and Securities Exchange Board of India (SEBI) has already taken note of this transaction and has concluded this as a bogus loan transaction and determined it to be a change of control transaction that triggers the SEBI Takeover Regulations and further may also trigger fraudulent trade regulations and insider trading regulations.
What intrigues us at PGurus is the inaction by SEBI on this matter. SEBI has been aware of all the above information since August 2013 and till date, they have not acted against the Rosy or RRPR Holding P. Ltd. under the Fraudulent Trade Regulation or Insider Trading Regulations etc. Further, the affidavit goes on to say that the offences under the SEBI laws can be converted or taking cognizance of as Predicated Offence/ Schedule Offences under PMLA only once SEBI initiates action. Why is it that SEBI has slept all this while when ED and Income Tax Department have been acting on these issues? Its time now that the new SEBI Chairman stops this “shield” or “cover-up” within SEBI and take appropriate action against Roys so that ED can take up this matter under PMLA.
Roys have to decide if they want justice from the Courts / legal system or play the victim and put pressure on the Govt and gather false public sympathy through propaganda.
On reading page 8 to 13 of the affidavit below, one is convinced that NDTV ran a bogus racket of setting and folding shell companies in tax havens overseas with the sole intention of routing money or creating a smokescreen to avoid detection of the true source and purpose of the funds. NDTV has set up and incorporated over 25-30 companies in many overseas jurisdictions over 4-5 years just to launder money or route money into India. What surprises us at PGurus is the fact that no action has been taken under PMLA or SFIO as these smokescreen transactions/cdummy shell companies were created without any substance (no assets or employees or business) but only to route money into India from unknown sources.
After doing all this chicanery and trickery, NDTV now calls the Income Tax Department as a fraudulent department that has made up false cases against them. As one would read from the earlier PGurus expose, NDTV is the one that has committed fraud by bringing money from Bermuda and lying about the source to the tax department. Further, all these transactions done by NDTV were pre-meditated tax evasion as has been clearly determined by the Income Tax Department in its filings before the Delhi HC. The only reason why NDTV has come out with this blatantly false allegation against the Department on March 23rd 2017 is because the Supreme Court (SC) is hearing its matter on Monday (27th March) and NDTV is trying to pre-judge/ influence the public discourse by playing the political victim card. Roys have to decide if they want justice from the Courts / legal system or play the victim and put pressure on the Govt and gather false public sympathy through propaganda.
Its time now that NDTV Frauds are exposed and punished by the judiciary and other investigative agencies such as CBI, ED and SEBI.
Copy of ED’s report
1. Text in Blue points to additional data on the topic.