‘No Violation, No Collusion’: CBI Gives Clean Chit to NDTV Founders Prannoy & Radhika Roy

After a seven-year investigation, the Central Bureau of Investigation (CBI) has filed a closure report exonerating Prannoy Roy and Radhika Roy, former directors of NDTV, from allegations of loan fraud and criminal conspiracy. Here’s a summary of the findings:

Key Findings of the CBI Closure Report

1. Loan from ICICI Bank Was a Normal Business Transaction
   • The Rs. 375 crore loan sanctioned to RRPR Holdings by ICICI Bank was found to be consistent with standard banking practices.
   • The reduced interest rate of 9.65% was higher than the bank’s average cost of funds.
2. No Violations of Banking Regulations
   • The loan secured under the NDU-POA arrangement did not breach the Banking Regulation Act.
   • Similar loans amounting to Rs. 15,000 crore were issued to 30 other borrowers during the same period.
3. No Violation of SEBI or MIB Policies
   • SEBI clarified that foreclosure rules on pledged shares were introduced only in 2009, post-dating the case.
   • RRPR Holdings did not require Ministry of Information and Broadcasting (MIB) approval to pledge NDTV shares as collateral.
4. Interest Rate Adjustments Were Routine
   • ICICI Bank had approved reduced interest rates for 83 other loan accounts between 2007 and 2010.
   • The Roys’ repayment plan with reduced interest was approved by the bank’s credit committee.
5. Use of Multiple Companies for Loan Transactions
   • The companies involved, such as Reliance Strategic Investment Pvt Ltd, were used for operational convenience, not for illegal purposes.
   • Restrictions on multi-layered subsidiary structures were introduced only in 2017, years after the transaction.

Background of the Case

• The Allegations: In 2017, the CBI accused the Roys and RRPR Holdings of causing a Rs. 48 crore loss to ICICI Bank by reducing the loan interest rate and failing to disclose pledged shares to SEBI.
• CBI Raids: Following the complaint, raids were conducted at the Roys’ residence, prompting NDTV to describe the case as baseless and motivated by a “disgruntled former consultant.”

Closure Report Highlights

The CBI determined that the loan was part of normal banking operations and dismissed allegations of collusion, conspiracy, or violations. The agency’s findings bring an end to a prolonged legal scrutiny of NDTV’s founders.

This decision marks a critical juncture, especially after NDTV’s 2022 acquisition by businessman Gautam Adani. The Roys no longer control the news network, but this clean chit helps safeguard their legacy amid changing corporate landscapes.