Setback for NDTV as Securities Appellate Tribunal upholds SEBI’s Rs 2 crore fine, channel to move Supreme Court

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The Securities Appellate Tribunal has upheld the SEBI’s decision to impose Rs 2 crore fine for not making full disclosure about tax demand of Rs 450 crore. The SAT, according to news agency PTI, also justified the SEBI’s decision to impose Rs 19 lakh penalty imposed by Sebi on the channel and three officials including promoters Pranoy Roy and his wife Radhika Roy.

NDTV

Moments later, the channel released a statement stating that it will move the Supreme Court to challenge the SAT’s decision. It said, “NDTV is appealing to the Supreme Court against what the company believes is an incorrect order by the Securities Appellate Tribunal or SAT.”

NDTV said that it had followed ‘all procedures and requirements and made full disclosures regarding what was, in fact, a false tax demand that was served on the company for a proper and legitimate investment of $150 mn by NBC, one of the top American TV networks and a subsidiary of General Electric at the time.’

“The outrageous and mischievous tax demand was made in 2014 for Rs. 450 crore. The investment was disclosed both by NDTV in India and in the USA by NBC’s parent company, General Electric, at the time and in keeping with all regulations and processes,” the statement by NDTV read.

The SAT on Wednesday, however, felt that 2 lakh fine imposed on the firm’s compliance officer, Anoop Singh Juneja, for violating listing agreement was unjustified. But the SAT noted that Juneja was still liable to pay Rs 1 lakh fine since he ought to have complied with the disclosure mandated under PIT Regulations.

The SEBI in its 2015 order had imposed a fine of Rs 2 crore on the company.

In June this year, the SEBI had also barred Roy couple from holding management positions in the channel for two years. They were also banned from the capital markets for the same duration. However, the SAT had stayed the SEBI order until its next hearing, scheduled for 16 September.

 

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