The Enforcement Directorate has slapped a show cause notice on Dr. Prannoy Roy, Executive Co-Chairperson and Mrs. Radhika Roy, Executive Co-chairperson of NDTV for alleged violation of Foreign Exchange Management Act, 1999 (FEMA) on Thursday.
Mr. K.V.L. Narayan Rao, Executive Vice Chairperson and NDTV Studios Ltd. (a subsidiary of NDTV) also received a show cause notice for alleged violation of FEMA.
The show cause notice is related to why adjudication proceedings should not be held for alleged contravention of provisions of FEMA, Money Control reports.
“The Company has been advised that the allegations of the contraventions of provisions of FEMA in the show cause notice are not legally tenable and the Company will reply to the same within due course of time.”
The Foreign Exchange Management Act, 1999 deals with the consolidation of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange in India.
Pranoy Roy has informed the Bombay Stock Exchange about the said notice re-iterating that it was not legally tenable.
Earlier in September, unverified reports claimed the ED had reportedly registered a case against NDTV for alleged FEMA violations in overseas offices and foreign subsidiaries.
NDTV has come under the scanner of not just ED but also market regulator SEBI.
Earlier this year, SEBI had slapped a penalty of Rs 2 crore on NDTV for violating the Listing Agreement and Securities Contracts (Regulation) Act.
According to another Economic Times report, the market regulator fined NDTV "for late disclosure of information in a Rs 450-crore income tax notice the media company had received in February 2014".