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 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.
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 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. 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.
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.
It is high time the Finance Ministry under Arun Jaitley acts against arguably one of the biggest money launderers in the garb of journalism.
 NDTV claimed they sold dreams. IT said: No. It is a sham transaction, slaps Rs.525 cr fine – Aug 1, 2016, PGurus.com
 NDTV Director KVL Narayan Rao admits guilt of illegal money routing of $150 M through Netherlands – Dec 18, 2016, PGurus.com
 Have CBI, ED probes on NDTV frauds slowed down? Is SEBI hushing up the probe against Prannoy Roy? Jan 18, 2018, PGurus.com
 Did Jeff Immelt and Zucker create the shell companies of NDTV? Feb 13, 2018, PGurus.com
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