CBI Files Fresh Case Against NDTV Promoters Prannoy Roy, Radhika Roy For Alleged Violation Of FDI Regulations

The Central Bureau of Investigation (CBI) has registered a fresh case of “criminal conspiracy and cheating” against NDTV founders Prannoy and Radhika Roy and the news channel’s former CEO Vikram Chandra.

The case has been filed for for allegedly violating foreign direct investment (FDI) rules in a 2007-09 investment, an allegation which has been denied by NDTV.

The probe agency has also registered an FIRs against unidentified government officials on charges of criminal conspiracy, cheating and corruption.

It may be recalled that recently, a CBI team had conducted searches at Vikram Chandra's residence.

The agency is in the process of scrutinising investments made by NCBU, a company owned by General Electric, in an NDTV owned company called NNPLC which is incorporated in London..

According to the CBI, NDTV owned NNPLC received a Foreign Investment Promotion Board (FIPB) approval in 2009, in violation of India’s Foreign Direct Investment (FDI) regulations.

The CBI has alleged that NNPLC received FDI regulations worth USD 163.43 million which was invested in NDTV subsidiaries through a series of opaque transactions.

However, NDTV has strongly denied the CBI's allegations and stated that that these are part of an attempt to silence the TV news channel’s journalism.

NDTV has claimed that the CBI action is part of the continued persecution of the free press. The TV news channel has stated that the CBI case has made a “ludicrous charge” that the transaction, which was declared to all relevant authorities in the US and India, was made to launder money meant for unknown public servants.

However, according to the CBI, the FIR is an outcome of a preliminary enquiry registered by the CBI in 2016.

According to the CBI, NDTV floated around 32 subsidiary firms all over the world, mostly in the tax havens of Holland, the United Kingdom, Dubai, Malaysia and Mauritius during May 2004 to May 2010.

The CBI has alleged that most of these companies had no business transaction and were meant for financial transactions to bring funds from abroad, in violation of FDI norms.

The probe agency called these transactions a “sham”, and alleged that funds were invested by unidentified public servants through NDTV and then laundered back to India using multiple layers of complex transactions as well as shell companies.

The proceeds of corruption by unknown public servants was invested through NDTV Ltd, the CBI has alleged.