New Delhi: The Central Bureau of Investigation (CBI) on Monday conducted raids against New Delhi Television (NDTV) news network founder Prannoy Roy and his wife Radhika Roy for causing an alleged loss of Rs380 million (Dh21.67 million) to a private bank.
Raids were conducted at Roy’s residences in New Delhi and Dehradun. While the premises of NDTV were not raided, the officials searched the office of RRPR Holding Private Limited, the promoter company of NDTV’s English and Hindi news channels.
“[The] CBI has registered a case against Prannoy Roy, Radhika Roy, a private company and others for causing an alleged loss to a bank. Searches are being conducted today at four places, including Delhi and Dehradun,” CBI spokesperson RK Gaur told media.
Last week, the investigating agency had registered a case into alleged irregularities in a 2008 loan that the holding company took from ICICI Bank.
The company took a loan of Rs3.66 billion allegedly on personal guarantees of the promoters and settled for a repayment a year later that was Rs500 million less than the loaned amount, sources in CBI said.
In a statement, NDTV described the raids as “concerted harassment based on old, endless, false accusations” by the central government.
“This morning, the CBI stepped up the concerted harassment of NDTV and its promoters based on the same old, endless, false accusations. NDTV and its promoters will fight tirelessly against this witch-hunt by multiple agencies. We will not succumb to these attempts to blatantly undermine democracy and free speech in India. We have one message to those who are trying to destroy the institutions of India and everything it stands for: we will fight for our country and overcome these forces,” the channel statement read.
Meanwhile, shares of NDTV on Monday slumped nearly 7 per cent after CBI raid. The stock tanked 6.74 per cent to Rs58.10 — its 52-week low — on Bombay Stock Exchange (BSE). At National Stock Exchange (NSE), the shares of the company dived 6.88 per cent to hit a one — year low of Rs58.15.
Prannoy Roy had founded the TV network with Radhika Roy in 1988.
In the past, the Roys were accused of receiving irregular promoter funding, in violation of the Reserve Bank of India Rules.
NDTV was also served a notice by Enforcement Directorate in 2015 for alleged violation of foreign exchange norms involving Rs20.3 billion.
