SC stuck with the recovery of the fine imposed by SEBI on NDTV and its sponsors
The Apex Court retained the recovery of the fine of Rs. 27 crore imposed by the Securities Exchange Board of India NDTV and its sponsors, namely Prannoy Roy and Radhika Roy, in December 2020.
According to the SEBI, the organizers of NDTV had allegedly violated various norms relating to securities and withheld important information about loan agreements from shareholders.
The bank had instructed the complainants to cooperate by April 6, 2021 in resolving complaints against the SEBI order initiated by SAT. SAT had instructed the complainants to deposit 50% of the amount without interest within four weeks. The immediate plea was against that decision only.
The lawyer on behalf of the applicants alleged that running a television channel was not child’s play and that it would require a lot of income. The lawyer stated that this is the main reason numerous news networks have come on board. Only those with a good network, like Times Now, can work.
According to the SEBI, there were clauses on loan agreements that adversely affected NDTV’s shareholders. One of NDTV’s shareholders alleged that certain confidentiality rules had been violated and that shareholders had not been informed of loan agreements with VCPL (Vishvapradhan Commercial Private Ltd.).
The bank was run by CJI, who ordered the NDTV owners not to forcibly reclaim any amount for the hearing of this case, and therefore granted them relief pending the next hearing.