NDTV files application with RBI on FEMA notice

The broadcaster was issued a notice by the Enforcement Directorate for alleged flouting of foreign investment and foreign exchange rules

BestMediaInfo Bureau | Mumbai | May 13, 2016

New Delhi Television Limited (NDTV) has filed an application with Reserve Bank of India (RBI) for compounding of the contraventions alleged in the showcause notice issued under the Foreign Exchange Management Act (FEMA) in 2015.

In a BSE filing, the company informed the authorities, “The company has duly replied to the SCN whereby it has been shown that there has not been any contravention as has been alleged in the SCN. However, as you are aware, the Company has been facing adverse publicity on various media platforms, including on social media which is adversely affecting the goodwill, reputation, growth prospects and sentiments of the existing and prospective investors of the company, which is contrary to the interest of all the stakeholders, including public shareholders.”

As per earlier media reports, the company had allegedly received a total of over Rs 1,113 crore in violation of FEMA rules, for which the directorate had issued the notice on the basis of investigations into the financial transactions made by 21 countries. The company has also mentioned that since it will at least take about 3-4 years for the matter to reach finality up to the Supreme Court level, the company had to look for other legal options.

NDTV further mentioned:  “The other legal resource available to the company in which the issues raised in the SCN can be quickly closed with a view to avoid unnecessary harassment and protracted litigation is to approach the RBI for compounding of contraventions alleged in the SCN which if at all, are technical or procedural in nature.”

Hence, in an attempt to save time and cost and to quickly close the matter to avoid unnecessary harassment and protracted litigation, the company, with the approval of its Board of Director, has filed an application with RBI.

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