The Enforcement Directorate (ED) has issued a Show Cause notice to NDTV Ltd in connection to alleged contraventions of Foreign Exchange Management Act (FEMA). The alleged offence pertains to a receipt of FDI worth Rs 1,637 crore and overseas investments to the tune of Rs 2,732 crore by NDTV. However, NDTV has rejected all such allegations.
According to a press release put out by the ED, the investigation “revealed that NDTV received Foreign Direct Investment of Rs 725 Crore and that only CCEA (Cabinet Committee on Economic Affairs) was competent to permit FDI in excess of Rs 600 Crore, in the case of NDTV but no CCEA approval was taken. 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 USD 130-160 Million.”
According to the ED, the FIPB documents also projected FDI differently as Rs 585 Crore (USD 130 Million @ Rs 45 per Dollar). However, FDI finally received by NDTV was allegedly $163 million.
Probe, the agency said, is still underway.
According to the ED, the total FDI contraventions are worth Rs 258,78,13,574 crore, and total Outward Direct Investment (ODI) contraventions are allegedly worth Rs 446,37,90,000 crore.
Alleged FDI contraventions.
(Photo Courtesy: ED)
In addition there are delays in reporting & filing information with RBI such as ODA form, Annual Performance Report etc. to the tune of Rs. 2286,28,54,148.Enforcement Directorate
Notices have been issued to Prannoy Roy, Radhika Roy, Vikram Chandra and others.
NDTV Rejects Allegations
NDTV, in a statement put out on its website, has rejected all allegations of violating FEMA regulations.
NDTV maintains that it is being targeted for its fair and independent journalism and that its persecution is intended to signal to other media that unless they fall in line, they will face similar consequences.
NDTV further said that raids on media owners are evidence of the fact that they are intended as a warning to other media houses to fall in line.
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