There have been various news floating regarding NDTV and its promoter Prannoy Roy. There was news few days back the CEO of NDTV Suparna Singh has tender her resignation and accordingly all the concerning authorities were informed.
But there are some hidden facts behind this news item, the fact is that the Ministry of Information & Broadcasting (I&B) found out that she was American citizen, which was clear violation of the law. As per law and rules, in TV and print media, all top posts including the post of editor should be a resident Indian Citizen.
This rule is well-known. Appointing Suparna Singh as the CEO in December 2017 shows the arrogance this company has towards India and its laws while preaching morals all the time. I&B never approved this and at last, she was forced to resign and NDTV informed the Stock Exchanges on August 22 of the same. The company put out a bland notification to the Stock Exchanges without revealing the exact reason for her resignation. They simply said as she did not get the approval of the I&B Ministry. Such is the high headedness of NDTV’s promoters.
Suparna Singh obtained United States (US) Citizenship during her studies in America in the mid-90s. It is interesting to note that Indian media organizations that talk about the illegality of others are often guilty of the same illegality. Many US, Singapore and British Citizens were illegally appointed by many Newspapers and TV Channels as their Editors and posted in top managerial positions. The rule is crystal clear. Only resident Indian Citizens can by appointed in such posts in India. Even Non-Resident Indians (NRI)s can’t be appointed.
On 19th Aug 2019, CBI filed an FIR against Prannoy Roy,his wife Radhika Roy and Vikramaditya Chandra. The main points of FIR as follows
-During the period from May 2004 to May 2010, NDTV Ltd floated around 32 subsidiary companies all over the world, mostly in tax havens viz Holland, UK, Dubai, Malaysia, Mauritius etc. Most of these companies have no business transaction and they were meant only for financial transactions to bring funds from abroad. It is alleged that above transactions are sham transactions, and these funds are invested by unknown public servants through NDTV and later laundered back to India through multiple layers of complex transactions and shell companies. Proceeds of corruption, was invested through NDTV.
-NDTV Ltd incorporated NNPLC in London on 30th Nov 2006, this company received an investment to the tune of US $ 20million through issue of 25,575 convertible preference shares together with 2558 warrants from Fuse Media Holding LP in Mar 2007 for 4.5 to 5% effective stke. NNPLC raised fresh funds amounting to $ 100 million through Jefferies International by issue of step up coupon convertible bonds in May 2007.In this transaction Jefferies International received $ 5.5 million as commission. NNPLC transferred Rs 193,98,44,325/- ( roughly Rs 194 Cr) to various subsidiary companies of NDTV group viz NDTV Imagine, NDTV Life Style, NDTV Emerging Market BV,NDTV Convergence Ltd and NDTV Labs Ltd.
-NDTV incorporated other company in Holland NDTV International Holding BV. Ina similar way (as mentioned above) $ 300million were invested in this company M/s NBCU, a subsidiary of Genera Electric USA, through Universal Studios International ,Holland. 26% of this amount was later received in the subsidiary companies of NDTV.
-The investment of $100 million in step up covetable bonds were repaid to the respective investors of NDTV in ratio by making a payment of $ 72.40 millions in Nov 2008. Similarly the investment of$ 150 million by NBCU, who had acquired 26% share holding in NNPLC has been settled by buying back the share of NDTV Network International Holding BV from NBCU after making the payment of $ 12,472,750 to Universal Studio BV Holland on 26th Oct 2019.
-It is alleged that NNPLC London got approval from the FIPB in violation of laid down FDI provisions worth $ 130-160 millions. Subsequently NNPLC London received total FDI worth $ 163.43 million till Sept 2009. Further, it invested the same amount in various subsidiaries of NDTV through a web of complex transaction.
There is also news floating around in the social media, that P Chidambaram and his son Karthi also used the services of NDTV to launder ill gain wealth.
If the information mentioned in FIR is correct then hats off to CBI team, who could unearth such a complex web of transactions, and lodged a FIR.
Let us wait and watch for further development in this case.
Waiting for your views/comments/feed backs.
Anil Malik
Mumbai, India
28th Aug, 2019
R. N. Mungale.
P. Chidambaram has to answer a lot of questions.