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NDTV dismisses charges as CBI books promoters
The CBI’s FIR, registered on Monday, alleged that NDTV, through its promoters, entered into a criminal conspiracy with “unknown public servants” with the object of bringing into India tainted money through a web of complex transactions using the foreign direct investment (FDI) route.
The Central Bureau of Investigation (CBI) has booked New Delhi Television Ltd (NDTV), its promoters Prannoy Roy and Radhika Roy, former chief executive officer and director Vikramaditya Chandra, and unknown officials of the Income-Tax Department on charges of criminal conspiracy, cheating and corruption for allegedly violating foreign direct investment (FDI) rules between 2004 and 2010.
NDTV dismissed the charges, calling them “malicious” and “fabricated” in order to “silence free and fair reportage”.
The CBI’s first information report (FIR), registered on Monday, alleged that NDTV, through its promoters, entered into a criminal conspiracy with “unknown public servants” with the object of bringing into India tainted money through a web of complex transactions using the foreign direct investment (FDI) route.
The FIR added that between May 2004 and May 2010, NDTV floated around 32 subsidiary firms all over the world, mostly in tax havens such as the Netherlands, the UK, Dubai, Malaysia and Mauritius.
“Majority of these companies had no business transaction and they were meant only for financial transactions to bring funds from abroad. It is alleged that these transactions are sham transactions and aforementioned funds are invested by unknown public servants through NDTV Ltd. and later laundered back to lndia through multiple layers of complex transactions and shell companies. Proceeds of corruption of unknown public servants were invested through NDTV Ltd,” the FIR contended.
The details listed by CBI pertained to a company incorporated by NDTV in London in November 2006 and in the Netherlands in 2008. It said that the London company raised funds of $120 million from two firms, and the Netherlands company raised $150 million from NBCUniversal, then a subsidiary of General Electric Inc
The CBI alleged these funds were, through a series of transactions, routed to various subsidiary companies of the NDTV Group, such as NDTV Imagine Ltd., NDTV Life Style Ltd, NDTV Emerging Market BV, NDTV Convergence Ltd. and NDTV Labs Ltd.
This money, the FIR added, was then repaid to investors in ratio through other transactions.
The FIR contended the London firm got approval from the Foreign Investment Promotion Board (FIPB) “in violation of laid down FDI provisions” for FDl worth $130-160 million. Subsequently, it received total FDI worth $163.43 million till September2009, and it invested the amount in various subsidiaries of NDTV through a web of complex transactions.
NDTV, in a written response rubbishing the charges, said that despite a series of cases in which the investigation is deliberately stalled, agencies had found no evidence of any corruption by NDTV. It said that Prannoy and Radhika Roy, the founders of NDTV, as also the company, had cooperated in all matters filed against them.
“As part of the continued persecution of free press, a new CBI case has been filed about a $150 million investment in NDTV’s non-news business by NBCU, then owned by General Electric, a massive American conglomerate. The case makes the ludicrous charge that the transaction, declared to all relevant authorities in the US and India, laundered money for unknown public servants,” the statement said.
It further said that NDTV and its founders had full faith in India’s judiciary at this crucial time and remain committed to the integrity of the company’s journalism.
“Attempts to silence free and fair reportage through malicious and fabricated charges will not succeed. This is not about a company or individuals but about a larger battle to maintain the freedom of the press, something which India has always been renowned for,” the statement added.
Vikramaditya Chandra said he was cooperating with investigators. “I will be definitely able to establish that there was no wrongdoing on my part. There has never been any wrongdoing on my part. I have full faith in system,” he said.
