ED issues notice to NDTV over forex norm violation of Rs 4,300 crore
An ED statement said the notice was issued in respect of suspected contraventions of the Foreign Exchange Management Act relating to foreign direct investment received by NDTV.Updated: Oct 18, 2018 23:43 IST
The Enforcement Directorate (ED) on Thursday said it had issued a show-cause notice to New Delhi Television Ltd, which operates television channels including the news broadcaster NDTV, its units and promoters for alleged breaches of foreign exchange rules to the tune of Rs 4,300 crore.
An ED statement said the notice was issued in respect of suspected contraventions of the Foreign Exchange Management Act relating to foreign direct investment received by NDTV to the extent of Rs1,637 crore and overseas Investment to the tune of Rs 2,732 crore. Those issued the notices include the channel’s founders and promoters Prannoy Roy and Radhika Roy, and journalist Vikram Chandra.
In a statement, NDTV said: “NDTV rejects any allegations of violating FEMA regulations. NDTV maintains that it is being targeted for its fair and independent journalism and that its persecution is intended to signal to other media that unless they fall in line, they will face similar consequences.”
Responding to the notice, Chandra tweeted: “So have apparently been sent a notice along with nearly two dozen people and entities, because I was a once a director on one of the companies 10 years ago. I have no idea about the matters mentioned, but will study. Prominence to my name below presumably for sensationalism!”
Other companies served notices include NDTV Lifestyle Holdings Ltd (now Ms Lifestyle and Media Holdings Ltd), South Asia Creative Assets Ltd, Astro Overseas Ltd and NDTV Imagine Ltd (now Turner General Entertainment Networks India Pvt Ltd).
“The investigation revealed that NDTV received FDI of Rs725 crore and that only CCEA (cabinet committee on economic affairs) was competent to permit FDI in excess of Rs 600 crore, in the case of NDTV but no CCEA approval was taken. FDI was projected as below Rs600 crore as part of larger conspiracy,” said ED statement.