The enforcement directorate (ED) has served a showcause notice pertaining to alleged foreign exchange rule violations involving Rs 2,030 crore against private news channel New Delhi Television Ltd (ND
The enforcement directorate (ED) has served a showcause notice pertaining to alleged foreign exchange rule violations involving Rs 2,030 crore against private news channel New Delhi Television Ltd (NDTV).
Sources said the notice has been issued under the Foreign Exchange Management Act (Fema). This case is being pursued under Fema since 2011, sources said. The agency suspects that the media firm allegedly did not follow Fema norms while setting up companies in several countries, including the United Kingdom, the Netherlands, Sweden and Mauritius.
The media firm on Friday told BSE that Prannoy and Radhika Roy, K.V.L. Narayan Rao and NDTV Studios have received showcause notices from ED on alleged contravention of the provisions of Fema. In a regulatory filing, NDTV said, “The company, along with Dr Prannoy Roy, executive co-chairperson, Mrs Radhika Roy, executive co-chairperson, Mr K.V.L. Narayan Rao, executive vice-chairperson and NDTV Studios Ltd (erstwhile subsidiary of the company since merged with the company) have on 19 November 2015 received a showcause notice from the directorate of enforcement as to why adjudication proceedings should not be held for alleged contravention of provisions of Fema.”
NDTV also said it has been advised that the allegations of the contravention of Fema norms in the showcause notice are not “legally tenable”. The company said it will file a reply to the ED notice soon.
