The Enforcement Directorate (ED) has served a show-cause notice on news broadcaster NDTV for allegedly flouting foreign exchange regulations in availing of overseas and foreign direct investment facilities of over Rs 4,300 crore.
In a statement, the financial probe agency said: “The investigation showed FEMA (Foreign Exchange Management Act) contraventions relating to receipt of foreign direct investment by NDTV to the extent of Rs 1,637 crore and the other relating to overseas investments to the tune of Rs 2,732 crore.”
The show-cause notice, issued under the FEMA, was issued to the founders and executive co-chairpersons of the group — Prannoy Roy and Radhika Roy, journalist Vikram Chandra and a few others. However, NDTV has rejected allegations of violating FEMA regulations.
The financial probe agency said: “The investigation revealed that NDTV received FDI of Rs 725 crore and that only CCEA (Cabinet Commiittee on Economic Affairs) was competent to permit FDI in excess of Rs 600 crore.” “In the case of NDTV no CCEA approval was taken,” it said, adding that the FDI was projected as below Rs 600 crore as part of “larger conspiracy”.
“While applying for FIPB Foreign Investment Promotion Board) approval, NDTV projected FDI as varying between $130-160 million. Documents of FIPB section also projected FDI differently as Rs 585 crore ($130 million at Rs 45 per dollar). “However, FDI finally received by NDTV was $163 million,” it said.
The ED also issued notice to Harpreet Singh Duggal of NGEN Media Services Pvt. Ltd, Anshuman Misra of Turner General Entertainment Networks India Pvt Ltd, Sameer Chandran Nair, who was earlier Director in NDTV Imagine Pictures Ltd and Alliance Lumiere Ltd, Grant Scott Ferguson of South Asia Creative Assets Ltd.