Prannoy Roy of NDTV caught for FIPB violations too. Approval was for Rs.585 crores but brought in Rs.1200 crores

Problems for NDTV promoter Prannoy Roy and Radhika Roy mount as IT, CBI and ED determine FIPB violations as well

Problems for NDTV promoter Prannoy Roy and Radhika Roy mount as IT, CBI and ED determine FIPB violations as well
Problems for NDTV promoter Prannoy Roy and Radhika Roy mount as IT, CBI and ED determine FIPB violations as well

Now New Delhi Television (NDTV) is caught for Foreign Investment Promotion Board (FIPB) violation also, during the tenure of P Chidambaram. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have found that in March 2007, the FIPB under Chidambaram approved NDTV to bring in Rs.585 crores maximum from its foreign outlets. As per the letter of FIPB dated March 5, 2007, NDTV was allowed to bring $130 to $160 million (Rs.585 crores maximum) dollar as foreign direct investment category. But now, the Income Tax Department has proved that NDTV has illegally brought Rs. 1200 crores ($270 million).

The recently deceased NDTV CEO K V L Narayan Rao had made a confession statement[2] that they did this to circumvent paying tax and all the companies floated aboard were just shell companies to accept money from dubious tax havens.

A Press release of the FIPB dated February 27, 2007, clearly shows that this FIPB clearance was just a sham. The foreign investor is shown as NDTV’s London based shell firm. This was proved in Income Tax investigation that this company was just a shell company and has only one staff who was the Chief Executive Officer (CEO) cum clerk cum peon. This multi-tasking staffer in London was none other than the Managing Editor and main anchor Vikram Chandra, a regular fixture in Lutyens Delhi[1].

Without Chidambaram’s blessing, no official in the Finance Ministry would have approved this Cock and Bull story that masquerades as Foreign Direct Investment. NDTV’s London based shell firm was allowed to invest in Delhi based NDTV’s  set of companies NDTV Images, NDTV Lifestyle, NDTV Labs, NDTV Convergence and NGEN Media Services Pvt Limited. Now the investor company and investing companies have either vanished or have been sold.  The reason for investment was shown as, “Induction of foreign equity in two companies to be engaged in the activities of up-linking of non-news and non-current affairs television channel”.

The Income Tax Department has determined that NDTV promoter Prannoy Roy was pulling wool over the eyes of the taxman and actually brought in Rs.1200 crores. The recently deceased NDTV CEO K V L Narayan Rao had made a confession statement[2] that they did this to circumvent paying tax and all the companies floated aboard were just shell companies to accept money from dubious tax havens.

Why is the Finance Ministry not acting on these FIPB violations? This also violates Information and Broadcasting Ministry rules. Recently an Inter-Ministerial Committee headed by I&B Ministry has suggested action against NDTV for series of financial violations, money laundering, tax evasion, stock market rigging, not providing information on the changes in the TV channel’s shareholding pattern from 2009[3]. But the Finance Ministry and the Securities and Exchange Board of India (SEBI) have not yet moved an inch on this. SEBI, having determined a change in control and issued a show cause to VCPL on December 20, 2016, has not hauled up the counter-party, the Roys, for illegal change in control[4].

Income Tax has summoned Prannoy Roy five times and already fined around Rs.860 crores for the frauds. The ED is expected to slap three cases of money laundering against Roy and his wife. This might be the reason for Prannoy Roy’s Hail Mary letter to Narendra Modi blaming BJP leader Subramanian Swamy and Gurumurthy for hounding him[5].

It is high time the Finance Ministry under Arun Jaitley acts against arguably one of the biggest money launderers in the garb of journalism.

References:

[1] NDTV claimed they sold dreams. IT said: No. It is a sham transaction, slaps Rs.525 cr fineAug 1, 2016, PGurus.com

[2] NDTV Director KVL Narayan Rao admits guilt of illegal money routing of $150 M through NetherlandsDec 18, 2016, PGurus.com

[3] Inter-Ministerial Committee recommends ban of Al Jazeera TV for Jihadi propaganda & actions against NDTV for tax fraudsFeb 5, 2018, PGurus.com

[4] Have CBI, ED probes on NDTV frauds slowed down? Is SEBI hushing up the probe against Prannoy Roy? Jan 18, 2018, PGurus.com

[5] Did Jeff Immelt and Zucker create the shell companies of NDTV? Feb 13, 2018, PGurus.com

Team PGurus

8 COMMENTS

  1. The tragedy is that a man who lost the election in 2014 is the head of Fin Min. Unable to act bcoz he has fingers in every pie.

  2. NDTV were deluding themselves that with their lies-power UPA III… IV etc will continue ad nauseum. They did not expect this chaiwala to spoil their dream. Now their entire game plan is in rubble. No clue where to start, if at all.

    All the Kings men and their media (and pidis ) could not put Humpty Dumpy together again.

  3. With such clear reporting of the NDTV fraud, one wonders what prevents the ED and the Govt. agencies from taking strong and swift action against this group. Is it corruption of sorts all over our agencies and are men supposed to render good governance made of straw? Very surprising that no newspaper or other media is reporting on this equally massive fraud, not to speak of the main opposition party which sees BJP as the only enemy to be countered.

    • It seems that Congress has many moles planted in various agencies, even in the Finance Ministry. BJP Govt must act fast and if PM has to fire some so be it. Here time is money for poor Indians.

  4. Chor Pranoy Roy. Pranoy Roy and many others in the LUTYENS gang are the crew of pirate ship named CON-GRESS whose captain is Desh Drohi (AGENTS OF VATICAN CHURCH) Antonia Maino and Pappu Raul Vinci.

  5. Its shameful on part of INDIAN ADMINISTRATION that they are taking much more time & lingering awards of punishments on such white collet criminals.

  6. Someone said it well in the SM that without the PR he is just “annoy” … where as vikram is actually the “vetal” … in fact he is both. Now we see how could we have these crooks distort the narrative day in and day out and annoy the hell out of majority. Modi will have to act …. or face 2019. Wonder if he is deluding like pm chandrashekhar did in ’90 or he still has a plan this year?

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