SEBI bars NDTV's Prannoy,Radhika Roy from capital markets for two years
New Delhi: Regulator Sebi on Friday barred NDTV Ltd's three key promoters -- Prannoy Roy, Radhika Roy and their holding firm from the capital markets for two years and also restrained the two individuals from holding any board or top management role at the company in this period.
The Roy couple has also been been barred from holding a board or key managerial position at any other listed company for one year, Sebi said while coming down heavily on them and RRPR Holdings Pvt Ltd for what it termed as violation of various regulations by keeping minority shareholders in the dark about three loan agreements.
One such loan agreement was with ICICI Bank while two loans were from a little-known entity Vishvapradhan Commercial Private Ltd (VCPL).
The ownership of Delhi-based 'wholesale trading' firm VCPL, incorporated in 2008, is said to have later changed hands from RIL to the Nahata group, from which the Mukesh Ambani-led firm had bought Infotel Broadband in 2010 to re-enter the telecom business.
Earlier last year, Sebi had ordered VCPL to make an open offer for NDTV Ltd for indirectly acquiring control of up to 52 per cent stake through a convertible loan of Rs 350 crore in 2009 'sourced' from a subsidiary of Reliance Industries Ltd.
In its latest 51-page order, the Securities and Exchange Board of India (Sebi) said all its directions, including debarment of RRPR, Prannoy Roy and Radhika Roy from buying, selling or otherwise dealing directly or indirectly in securities, or being associated with the securities market, will come into effect immediately.
Their existing holdings, including mutual fund units, will remain frozen during the prohibition period, Sebi said.
Sebi said its probe began after receipt of complaints in 2017 from Quantum Securities Pvt Ltd, a shareholder of New Delhi Television Ltd (NDTV), about alleged violation of rules by non-disclosure of material information to the shareholders about loan agreements with VCPL.
The ICICI Bank loan had a clause wherein the three promoters of NDTV had undertaken not to permit any major corporate restructuring, merger etc. without prior written approval of the lender.
Investigations found that another loan agreement was signed with VCPL for a loan of Rs 350 crore later, which did not carry any interest rate, to repay the ICICI Bank loan that had an interest rate of 19 per cent.
However, one of the terms of the new loan effectively gave VCPL control over the entire shareholding of RRPR Holdings. The agreement gave further significant powers to VCPL and it was significantly material and price-sensitive in nature, as per the order.
A second loan agreement for Rs 53.85 crore was also signed with VCPL a year later that provided for the promoters of NDTV allowing the lender to indirectly acquire 30 per cent stake in the media company through conversion of their warrants into equity shares of RRPR Holdings.
It was alleged that by concealing such material information from the public shareholders for a period when the promoters were themselves dealing in the company shares, they had committed a fraud on the minority public shareholders.
Noting that the company was bound to intimate such material information to the public shareholders to help them take informed investment decision, Sebi said "the loan agreements were unmistakably structured as a scheme to defraud the investors by camouflaging the information about the adversarial terms and conditions impinging upon the interest of NDTV's shareholders." Sebi said Roys have been the face of NDTV and the prime movers of all its activities, while they were also actively running the day-to-day management as Chairman and Managing Director (MD).
Under the circumstances, they had "avowed duty to act in a fair and transparent manner to protect the interest of their minority shareholders and not to indulge in any fraudulent activity or any activity detrimental to the interest of the shareholders of NDTV".
"However, contrary to the same, in the present case, the noticees -- the promoters and directors of NDTV -- have been found to have indulged in fraudulent acts wherein they have bartered away the interests of NDTV by making them subject to prior written consent of ICICI/VCPL without disclosing the same to the company (NDTV)," Sebi said.
The regulator also accused them of having violated the Code of Conduct of NDTV, which they were supposed to abide by as Chairman and MD.
"Any fraudulent act directly designed to defraud such investors cannot be treated as good for the securities market and for the interest of investors. Such acts, if not dealt with adequately and sternly, will send a wrong signal to the violators having same or similar propensity and will not be good for the securities market," the regulator said in its order.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Karnataka to approach SC seeking permission to continue MGNREGA
Bengaluru (PTI): The Karnataka Cabinet on Thursday decided to approach the Supreme Court seeking permission to continue implementation of MGNREGA in the state, contending that the Centre had repealed the rural employment guarantee law without consultation and failed to put in place any alternative mechanism under the VB-G RAM G Act.
Briefing reporters after the Cabinet meeting, Karnataka Law and Parliamentary Affairs Minister H K Patil said the state would immediately move the apex court seeking permission to prepare and implement the annual action plan for rural employment works, while also challenging what it described as an infringement on the constitutional rights of states.
The parliament passed VB-G RAM G in December that replaces MGNREGA.
Patil explained that the Cabinet decided to approach the court seeking permission for the State Government to prepare an action plan in this regard. Since the Centre’s stand interferes with the constitutional rights of state governments, the Cabinet has also decided to challenge this issue before the appropriate court
“There are two points here. One is that they have come in the way of our constitutional right of providing the right to work. That has been halted, and, therefore, the State Government has decided to approach the Supreme Court. The second point is that the Government of India has not provided any alternative,” the Minister said.
The Central Government has not yet issued a notification to implement the VB-G RAM G Act, nor has it made any alternative arrangements and hence continuing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is unavoidable in the public interest, the Minister said.
“Therefore, in the interest of the public, farmers and agricultural labourers, we must continue MGNREGA. For that purpose, the Cabinet has decided to approach the court seeking permission for the State Government to prepare the action plan for this year,” he added.
The Minister also said the Centre had only permitted continuation of pending and spillover MGNREGA works without releasing grants or announcing a fresh action plan.
“The Centre itself has said that pending, spillover and half-done MGNREGA works can continue. That means MGNREGA is actually still functioning in practice. But there is no new action plan,” he said.
Patil said the state had already passed a resolution on the issue, while Chief Minister Siddaramaiah had written to the Prime Minister and the Rural Development Minister had held discussions with Union Ministers.
Replying to questions, the minister said the state would move court “as immediately as possible.”
He clarified that the state was seeking permission to formulate and implement this year’s action plan under the existing framework.
“What we are asking the Supreme Court is to allow us to have the action plan for this year and implement it,” he said.
The Cabinet also held detailed discussions on the final report submitted by the State Education Policy Commission headed by former UGC chairman Professor Sukhadeo Thorat.
Patil said a Cabinet sub-committee would be constituted to examine the report and recommend measures for implementation.
“No decision has been taken yet. The Cabinet sub-committee will recommend what should be accepted and what should be modified,” he said.
He said the report comprised around eight volumes and covered issues relating to financial implications, human resources, curriculum reforms, deemed universities, unitary universities and newly established universities. The Chief Minister has been authorised to constitute the sub-committee.
The Cabinet also approved the Karnataka Motor Transport and Other Related Workers’ Social Security and Welfare Amendment Bill, 2026, transferring welfare administration of transport-related workers from the Labour Department to the Transport Department.
The Cabinet further approved establishment of three new industrial estates in Kalaburagi, Yadgir and Surpur under the Karnataka State Small Industries Development Corporation and Kalyana Karnataka Region Development Board schemes at an estimated cost of Rs 200 crore.
The Cabinet also approved amendments to Karnataka Civil Services (General Recruitment) Rules, 2026, providing two per cent reservation in state civil services appointments for sportspersons.
