CBI lodges FIR against NDTV Directors for criminal conspiracy, cheating

The Central Bureau of Investigation (CBI) has lodged an FIR against NDTV Directors Prannoy Roy, Radhika Roy, and Vikram Chandra for the alleged offences of criminal conspiracy and cheating..The FIR filed on Monday alleges that NDTV had floated around 32 subsidiary firms around the world with a view to bringing funds from abroad. These funds were invested by unknown public servants through NDTV and laundered back into India through multiple layers of complex transactions and shell companies, the FIR states..“M/s NDTV Ltd. through its promoters viz. Sh. Prannoy Roy and Mrs. Radhika Roy, Sh. KVL Naryanan Rao (since expired), Sh. Vikramaditya Chandra had entered into criminal conspiracy with unknown public servants with the object of bringing tainted money of unknown public servants through a web of complex transactions through the FDI route.”.In light of these allegations, an FIR has been lodged under Sections 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code. Sections 13(1) and 13(2) of the Prevention of Corruption Act, 1988 have also been invoked against the unnamed public servants involved in the alleged offences..Between May 2004 to May 2010, NDTV had set up subsidiary firms in countries like Holland, the United Kingdom, Dubai, Malaysia and Mauritius. The FIR states that a majority of these companies had no business transactions and were only set up for financial transactions to bring funds from abroad..“lt 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 was invested through NDTV Ltd.”.The company has incorporated NDTV Network PLC (NNPLC) in London in 2006 and received investment to the tune of $20 million. It later raised funds on $100 million. Through these transactions, NDTV transferred nearly Rs. 194 crore to its subsidiaries in India. A similar investment of $150 million was made in a holding company incorporated in The Netherlands..NDTV then repaid the $100 million invested in its London subsidiary and the $150 million invested in its Dutch subsidiary in 2008 and 2009 respectively. The London transaction was done in violation of Foreign Direct Investment (FDI) norms, the FIR alleges..“lt is alleged that M/s NNPLC, London got approval from the FlPB Board in violation of laid down FDI provisions for Foreign Direct lnvestment (FDl) worth USD 130-160 million. Subsequently, M/s NNPLC London received total FDI worth USD 163.43 million till September, 2009. Further, it invested the said amount in various subsidiaries of NDTV through a web of complex transaction.”.The above facts, according to the complainant, DSP Lalit Phular, prima facie disclose the commission of cognizable offences under lndian laws. The case will now be taken up for investigation by the CBI..Read the FIR: