Delhi Court Clears NDTV Founders of Loan Conspiracy Allegations: CBI Closure Report Accepted

A Delhi Court has accepted the closure report filed by the Central Bureau of Investigation (CBI) in a case alleging criminal conspiracy against NDTV founders Dr. Prannoy Roy and Radhika Roy and officials from ICICI Bank over a controversial loan transaction.

The case, rooted in allegations of violations under Section 19(2) of the Banking Regulation Act, 1949, had been under investigation following a complaint by Sanjay Dutt, the Director of M/s Quantum Security Pvt. Ltd. The complaint claimed irregularities in loan advancement and shareholding transactions involving NDTV’s promoters and ICICI Bank.

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Allegations in the Case

According to the complaint, Dr. Prannoy Roy and Mrs. Radhika Roy, in collaboration with RRPR Holding Pvt. Ltd., allegedly made an open offer during the financial year 2008-09 to acquire over 1.26 crore equity shares of NDTV Limited. This move was purportedly made in violation of Section 19(2) of the Banking Regulation Act, which restricts banks from holding shares exceeding 30% of a company’s paid-up share capital.

The allegations further suggested that the Roys conspired with ICICI Bank officials to secure a loan of ₹375 crore. The complaint accused ICICI Bank of taking over the Roys’ shareholding as collateral, reducing the interest rate from 19% to 9.65%, and thereby violating banking regulations.

Findings of the CBI

In its closure report, the CBI concluded that there was no evidence of collusion, conspiracy, or violation of banking laws by the accused parties. The agency noted that the loan transaction, as reviewed by forensic auditors M/s Pramod Kumar and Associates, appeared to be a standard business arrangement.

The report further stated that ICICI Bank’s decision to reduce the Debt Service Reserve Account (DSRA) balance and lower the interest rate was made following appropriate internal committee discussions and did not indicate any irregularities.

Sanjay Dutt, the complainant, expressed satisfaction with the CBI’s investigation, which further bolstered the case for accepting the closure report.

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Court’s Observations

Special Judge (PC Act) Shailender Malik of Rouse Avenue Courts accepted the CBI’s findings, stating that no criminality or violation of Section 19(2) of the Banking Regulation Act had been established. The court remarked:

“Upon going through the entire closure report, documents annexed, coupled with submissions made by the learned Public Prosecutor for CBI as well as the statement given by the complainant to the effect that he is satisfied with the investigation… this Court accepts the closure report.”

Implications

The court’s decision ends the allegations against NDTV’s founders, who had been scrutinized for their financial dealings with the media company. The acceptance of the closure report signifies significant relief for the Roys and highlights the importance of due diligence in economic and corporate investigations.

The case underscores the need for a meticulous and transparent investigative process to ensure fairness and uphold public trust. The court approved the CBI’s closure report, dismissing the allegations against NDTV’s founders and reaffirming their adherence to financial and legal protocols.