Biggest Media Crooks Ndtv Gadiki Band Modalaindi

[donganaaK]

Income Tax department has alleged that NDTV concealed material facts from the High Court, including its move to reduce its capital, merger between two subsidiaries and mortgaging property worth Rs50 crore without the I-T dept's knowledge

On 6 May 2014, The Delhi High Court judge, Justice Sanjeev Sachdeva issued a notice to the National Stock Exchange (NSE), BSE and market regulator Securities and Exchange Board of India (SEBI) following a submission by the Income-Tax (I-T) department in its Rs450 crore tax demand from New Delhi Television Ltd (NDTV). In its submission the I-T department has alleged that NDTV concealed material facts from the High Court, including a move to reduce capital to Rs351.96 crore from Rs507.70 crore. The tax department also objected to the merger between NDTV's two subsidiaries and the company's property mortgage worth Rs50 crore without the I-T department's knowledge.

 

The notice said, “...the Disputes Resolution Panel (DRP) -II has passed an order on 31 December 2013 and a demand has been raised by the Assessing Officer on 21 February 2014 of about Rs450 crore. It is noticed that the no objection/approval of BSE, NSE has been received on 4 September 2013 prior to the order of DRP-II. In my view, it would be in the interest of justice to issue notice to BSE, NSE and SEBI.” The notices are returnable on 24 September 2014.

 

In the submission dated 6 May 2014, the I-T department alleged that NDTV's move to reduce its capital was proposed with 'malafide intention of defrauding' the revenues of its legitimate tax dues.

 

NDTV had filed for a reduction of capital from Rs507.70 crore to Rs351.96 crore under sections 100 to 104 of the Companies Act, 1956. The I-T department alleges that the proposal did not disclose a crystallised tax demand of about Rs450 crore. "...reduction of share capital against accumulated losses and no payment made to the shareholders will result in erosion in the value of the investment held by the shareholders and ultimately may result in capital loss in the hands of shareholders," the I-T department alleged in its submission.

 

"...the facts and circumstances of the case necessitate piercing the corporate veil for ascertaining the real purpose underlying the reduction of share capital as the same has been actuated with an intention of defrauding the revenue and thwart the recovery of taxes," the tax department alleged in its submission before the Delhi HC.

 

On 7 February 2014, NDTV informed BSE that its board of directors has in-principle approved merger between NDTV Labs Ltd with NDTV Convergence Ltd, its subsidiaries.

 

Responding to this, the I-T department alleged, "NDTV Convergence owns brand NDTV.com, which is valued at about Rs1,000 crore, while NDTV Labs is a loss making company. The announcement of this proposed merger has also not been disclosed by the Petitioner (NDTV). It reinforces that the Petitioner (NDTV) company has not disclosed material facts before the Court while seeking approval of capital reduction. This establishes that the Applicant company (NDTV) has not approached the Court with clean hands."

 

Opposing the petition filed by NDTV in the HC, the I-T department said, "...the petitioner has sought to utilize its surplus funds lying in the share premium account towards an entirely non-essential activity, which is dressing up of its Balance Sheet by adjusting surplus funds against accumulated losses. Thus the petitioner's (NDTV) ability to pay off the crystallized demand would be adversely affected and prejudice the right of the I-T department to recover the legitimate dues due to the department and would be against the public interest."

 

"...it has come to the knowledge of the Objector (I-T dept) that during the pendency of the assessment proceedings, the Petitioner (NDTV) has mortgaged its properties 1) Plot No FC-10, Sector 16A, Noida and 2) Second Floor, W-17, Greater Kailash-I, New Delhi, worth Rs50 crore to Syndicate Bank. The transfer is void in view of provisions of Section 281 of the Income Tax Act."

 

The I-T department also accused the company of using 'pre-mediated colourable device' and 'round tripping' to evade taxes. "...the Applicant Company (NDTV) has used the colourable device of incorporating foreign subsidiaries, entering into sham transactions of issue of shares through these subsidiaries and introduction of money into its account books while subsequently buying back the shares at extremely low prices, which resulted in booking of losses by third parties and laundering of money in the case of petitioner company (NDTV). During the assessment proceedings for AY2009-10 in the case of petitioner company (NDTV), the corporate veil was lifted and the income was taxed in the petitioner company's (NDTV) hands and this action of the Assessing Officer was confirmed by the Dispute Resolution Panel (DRP), which also further enhanced the additions. The Income Tax Appellate Tribunal (ITAT) has also not granted stay to the petitioner company (NDTV) as requested by it. The Objector (I-T dept) further submits that if instead of using colourable device, the assessee company (NDTV) had introduced money into its account books, the same would have attracted tax under the provisions of I-T Act, 1961. Thus by way of the said pre-mediated colourable device, the tax has been evaded, which is clearly against the public interest. Further, there are serious allegations of 'round tripping' for the purpose of evasion of taxes, in the cases of the petitioner company (NDTV) for the assessment year 2010-11 and 2011-12, which are being investigated."

 

As reported by Moneylife in the past, financially beleaguered NDTV India pulled off a coup by getting deep-pocketed ‘strategic’ investors and top-flight private equity investors to abandon their stiff standards and pick up big chunks of its equity. In April 2011, DE Shaw group, a $20 billion investment and technology development company, picked up a 14.2% stake in NDTV providing an exit to Goldman Sachs, another blue-chip investor, which probably exited at a loss. After this, NDTV acquired a significant investor—Abhay Oswal, who owned nearly 15% of its equity but seems to have no presence on NDTV’s board of directors. Mr Oswal happens to be the father-in-law of Navin Jindal, an industrialist and Congress leader.

 

But this was not the only investment NDTV had swung. In March 2011, it sold a 49% stake in NDTV Lifestyle Holding Pvt Ltd, to Malaysia’s Astro All Asia Networks for $40 million. Here, too, Astro All Asia was stepping in after NDTV terminated a previous agreement with Scripps Networks to sell a higher stake.

 

As Moneylife reported, Prannoy Roy-led NDTV, was served a Rs450 crore demand notice by income tax (I-T) in February this year but did not inform the BSE or National Stock Exchange (NSE) about this, which is an alleged violation of listing norms.

 

However, this is not the first time NDTV has been accused of wrongdoing. The Comptroller and Auditor General of India (CAG) in its report on XIX Commonwealth Games alleged that while awarding contracts worth Rs37.8 million for production & broadcasting of commercials for promoting CWG-2010 to NDTV and CNN-IBN, the Commonwealth Games Organizing Committee followed an arbitrary approach. “Proposals were considered in an ad hoc manner, as and when a proposal was received; no form of competitive tendering was adopted. We had no assurance about the competitiveness of the rates quoted by these channels and the need and usefulness of these proposals. From March 2010 to June 2010, the entire pre games publicity and sponsorship publicity was done only on NDTV & CNN-IBN,” the CAG had said in its report that was tabled in the Parliament on 5 August 2011.

 

Earlier on 20 January 1998, the Central Bureau of Investigation (CBI) filed cases against NDTV's then managing director Prannoy Roy, Doordarshan's former director general R Basu and five other top officials for criminal conspiracy and under the Prevention of Corruption Act. According to the CBI charge-sheet, Doordarshan suffered a loss of over Rs 35.2 million due to the 'undue favours' shown to NDTV as its programme The World This Week (TWTW) was put in 'A' category instead of 'special A' category.

 

Officials from NDTV, BSE and NSE were not immediately available for comments. Our emails sent to them remained unanswered till writing the story. We would incorporate their views as and when we receive it.

[SUbba LIngam]

aa burkha mund@ meeda evo cases unnayi kada, vaati meeda concentrate chesi danni bokkalo ki pampaali 

[JANASENA]

KODUKU WAT lo pothey , ela feel avuthunnaru ani adige goppa TV NDTV 

[donganaaK]

aa burkha mund@ meeda evo cases unnayi kada, vaati meeda concentrate chesi danni bokkalo ki pampaali 

 

daani husband paina oka terrorist case undi and daani paina corruption charges unnay ( Nira radia tapes) , and NDTV paina 5000cr money laundering scam investigation nadusthondi ..... barkha is the biggest biatch of india , i'd love to see her going to jail