India

NDTV is driving towards bankruptcy: Rs. 40 crores worth frauds disclosed within 3 weeks

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The Securities Exchange Board of India on Thursday fined NDTV promoters Prannoy Roy, Radhika Roy and RRPR Holdings Rs 27 crore for allegedly concealing information from shareholders about certain loan agreements.

SEBI said its investigation in the case began in 2017 after receiving complaints from Quantum Securities Private Limited – a shareholder of NDTV – about alleged violation of rules by non-disclosure of material information to the shareholders about loan agreements with Vishvapradhan Commercial Private Limited.

This comes weeks after SEBI had barred Prannoy Roy and Radhika Roy from accessing the securities market for two years for alleged violation of insider trading regulations. It directed the NDTV promoters to relinquish illegal gains worth over Rs 16 crore for their in involvement in insider trading.

In June 2019, the regulator had barred the three promoters from the capital markets for two years and also restrained Roys from holding any board or top management role at the company in this period in the same case.

NDTV is facing multiple cases related to violation of FDI norms, Income Tax violation, and non-compliance with disclosure norms. CBI is probing a case against NDTV in relation to a Rs 375 crore loan from ICICI Bank and a corresponding wrongful loss of Rs 46 crore to the bank.

There is a chain of borrow, repay and borrow where Roys took a series of loans in 2008 as they sought to buy back a large chunk of NDTV shares from the market, allegedly violating foreign direct investment (FDI) rules in a 2007-09 investment, a charge denied by the company.

If all these cases continue to break on NDTV, just like over the last few months, the heads can be easily seen driving the channel into bankcrupty considering the decreasing viewership of the Channel over the years and might have to opt towards shutting down the channel.

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