Income Tax Department attaches NDTV promoter Roys’ shares
NDTV informed the Bombay Stock Exchange about this development, saying that RRPR Holdings currently holds 1,88,13,928 equity shares had received an order dated 25/10/2017 issued by Deputy Commissioner of Income Tax, informing them about this move. The shares have been attached under Section 281B of the Income Tax Act. RRPR said it is in the process of seeking legal advice in the matter to take appropriate action.
Earlier this week, the Securities and Exchange Board of India (SEBI) had disposed of proceedings against promoters Prannoy Roy, Radhika Roy and RRPR Holdings in a case related to alleged delay in disclosure about their aggregate shareholding in NDTV.
NDTV’s shares were recently the subject of rumours when it was noticed by many that the share prices had moved up almost by 80% in just a few days, without any specific reason.
This attachment of property comes just months after the house of NDTV’s founders were raided by the CBI. The raid was part a crackdown for bank frauds. The CBI has registered a case against Roy, his wife and co-founder of the channel Radhika Roy, a private company and others for allegedly defrauding a private bank. The case related to a Rs 396 crore fraud on ICICI Bank.
The Income Tax Department too was interested in these web of companies as it was looking into undisclosed income of Rs 1600 crore relating to NDTV. A media report, suggested that the assessment of the concealed income of Rs 642.5 crore by NDTV Group and related companies was done in February, 2014. Re-assessment proceedings for concealment of income of Rs 403.85 crore were initiated against M/s RRPR Holdings Pvt Ltd owned by Prannoy and Radhika Roy.
NDTV itself had also been in trouble after, Sanjay Dutt, director of a financial-services firm Quantum Securities who owned around 125,000 shares in NDTV, had filed complaints with Enforcement Directorate and Directorate General of Income Tax alleging that that NDTV and its promoters had violated a number of laws.
In January 2015, Dutt had filed a written petition in Delhi High Court against Enforcement Directorate and Directorate General of Income Tax Investigation alleging that both agencies failed to act on his complaints.
The last time NDTV’s founders had to answer to the law, the media had taken a stand that this was against freedom of the press and the raids on the Roys were an attempt to silence media.
