News broadcaster New Delhi Television Ltd (NDTV) on Friday said it has received a show cause notice from the Enforcement Directorate (ED) for alleged violations of forex norms.
“….The company along with Dr Prannoy Roy, executive co-chairperson, Mrs Radhika Roy, executive co-chairperson, Mr KVL Narayan Rao, executive vice chairperson and NDTV Studios Ltd (erstwhile subsidiary of the Company since merged with the Company) have on November 19, 2015, received a show cause notice from the Directorate of Enforcement as to why adjudication proceedings should not be held for alleged contraventions of provisions of FEMA (Foreign Exchange Management Act),” the company said in a filing to the BSE.
On September 30, the company had clarified that the ED had sought certain information and documents from the firm. At that time, NDTV had denied receiving a show-cause notice or order from the enforcement agency.
The company, in its fresh filing on Friday, also said it has been advised that the allegations of the contraventions of FEMA norms in the show cause notice are not “legally tenable” and would will file a reply to the ED notice soon. Earlier on June 4, the Securities and Exchange Board of India (Sebi) imposed a Rs 2 crore fine on NDTV for delayed in disclosure of a Rs 450 crore tax demand received by the company. NDTV is planning to contest the Sebi order.
On consolidated basis, the company has posted a net loss of Rs 17.19 crore in the quarter ending September 2015, against a net loss of Rs 26.89 crore in the same period a year ago. Net sales of the company rose to Rs 127.35 crore in the second quarter of 2015, up 16.7 per cent from a year ago.
On Friday, shares of NDTV closed at Rs 85.75 a piece down 2.56 per cent, while the benchmark index BSE Sensex closed at 25868.49 up 0.10 per cent.