RRPR (Radhika Roy Prannoy Roy) Holdings, a shell company with no income was given a loan of Rs.375 crores ($56 million) by ICICI at 19% interest.
Within two days of receiving this loan, Prannoy Roy diverted Rs.21 crores ($3.11 million) to himself and Rs.71 crores ($10.5 million) to wife Radhika Roy as interest free loans.
Income Tax Dept. (ITD) took a dim view of these transactions and has questioned the whole deal as an attempt to evade taxes (report at the end of the post).
We wrote yesterday about how Prannoy Roy made a profit of Rs.53 crores ($8 million). More skeletons tumble out from the closet of NDTV’s Prannoy Roy. The Income Tax Department (ITD) has found that in October 2008, within two days of receiving Rs.375 crores loan from ICICI Bank, Prannoy Roy diverted Rs.21 crores to himself and Rs.71 crores to wife Radhika Roy as interest free loans. The role of ICICI Bank was also under controversy in this murky deal because the loan was allotted to the shell company RRPR Holdings Private Limited, which controls NDTV.
This implies that out of the Rs.375 crore ($56 million) loan, Rs.92 crores ($13.6 million) went to the Roy household!
RRPR is a shell company with no income having 50 percent shares each by husband and wife. Based on what collateral did ICICI Bank give the loan to a shell company? The loan with 19 percent interest was received on October 14, 2008, when NDTV’s friend P Chidambaram was the Finance Minister. On October 16, the RRPL grants interest free loan to its own Directors! This is nothing but fraud. It is sure that this was done with the blessings of ICICI Bank, which gave such a huge loan to a non-income showing shell company.
As per the Income Tax Report dated December 29, 2015, Prannoy Roy was granted interest free loan of Rs. 20,92,00,009 ($3.11 million) by RRPL on October 16, 2008, just 48 hours after RRPL got Rs.375 crores from ICICI Bank with 19 percent interest. The same day RRPL also gave interest free loan of Rs.71,00,00,107 ($10.5 million) to wife Radhika Roy too. This implies that out of the Rs.375 crore ($56 million) loan, Rs.92 crores ($13.6 million) went to the Roy household! Prannoy Roy has been preaching integrity in public life for the longest time, as if he was always taking the high road. Irony died a thousand deaths!
Another Income Tax Report of January 29, 2016 also details the complete fraudulent operations of Prannoy Roy through the shell company RRPL in controlling and bagging money in the name of Stock Exchange Listed company NDTV. The two Income Tax Reports are published at the end of this report. PGurus already reported how Prannoy Roy siphoned Rs. 53.84 crores ($8 million) in 2010 into his personal account from RRPR Holdings after receiving more than Rs.350 crores ($52 million) from Reliance Group linked firm VCPL.
Income Tax report also exposes how Prannoy Roy’s shell company told blatant lies to the Tax department. To the ITD they stated that they had attached bank transaction details and Certificates of Deposit (CD)s. But the ITD says that it was a total lie and they never attached any such documents.
The systemic rot that has set in during the UPA era shows signs of continuing with a cabal of politicians cutting across political lines trying to cover up/ obstruct/ obfuscate the inquiries being conducted into NDTV dealings. It is high time this government show spine and let the law of the land do its job.
Copy of RRPR Tax Documents:
1. The conversion rate used in this article is 1 USD = 67.46 Rupees.
2. Text in Blue points to additional data on the topic.