CBI Closes 7-Year Probe Against NDTV Founders Prannoy Roy and Radhika Roy

After a seven-year investigation, the Central Bureau of Investigation (CBI) has filed a closure report in the case against former NDTV promoters and directors, Prannoy Roy and Radhika Roy. The case, which was initiated in 2017, alleged that the Roys had caused a wilful loss of over 48 crore to ICICI Bank.

Background of the Case

The CBI had launched the investigation based on a complaint from Sanjay Dutt of Quantum Securities. The complaint alleged that RRPR Holdings Pvt Ltd, a company linked to the Roys, had taken a 500-crore loan from India Bulls Pvt Limited to acquire a 20% stake in NDTV. Additionally, RRPR Holdings took out a 375 crore loan from ICICI Bank at an interest rate of 19% per annum to repay the loan from India Bulls. The Roys were accused of pledging their entire shareholding as collateral for this loan without reporting it to the Securities and Exchange Board of India (SEBI), stock exchanges, or the Ministry of Information and Broadcasting.

The CBI alleged that ICICI Bank had settled for the foreclosure of the loan, agreeing to a part-waiver of interest, which resulted in an alleged loss of 48 crore for the bank. However, NDTV had maintained that the loan from ICICI Bank had been repaid over seven years ago and denied any wrongdoing, stating that the allegations of failing to disclose the pledging of shares were 'incorrect and false'.

Closure of the Case

The CBI has closed the case due to a lack of sufficient evidence. A special court will now decide whether to accept the closure report or instruct the agency to continue the investigation. This decision comes after extensive searches and questioning of the Roys, including raids conducted at their residential premises in Delhi and Dehradun in 2017.

The 2017 raids were widely condemned as an attack on press freedom, with many viewing the action as an attempt to silence NDTV, which was seen as one of the few critical voices against the government at the time.

Recent Developments

In December 2022, the Adani Group acquired a controlling stake in NDTV, purchasing shares from the Roys at a premium. This acquisition was seen as a significant development in the media landscape, with many viewing it as a blow to independent media in India.

The closure of the case has sparked various reactions, with the Congress party describing it as a 'classic Modani operation', hinting at political motivations behind the initial investigation.