The Income Tax Department has sent a second notice to Deepak Kochhar, husband of ICICI Bank Chief Executive Chanda Kochhar, who is facing conflict of interest questions over the bank’s Rs 3,250-crore loan to the Videocon Group in 2012, a department official said on Monday.
The source said the department had sent Deepak a notice under Section 139(9) of the Income Tax Act seeking an explanation on his personal income.
The tax authorities had earlier sent a notice in the first week of April to NuPower Renewables, a joint venture between Deepak and Videocon Group chief Venugopal Dhoot, which was formed in December 2008.
The source said the Foreign Tax Division of the department had written to the authorities in Mauritius seeking details of ownership of DH Renewables Holding Ltd, a major shareholder in NuPower Renewables.
Earlier this month, the Central Bureau of Investigation (CBI) questioned NuPower Renewables CFO and Head of Corporate Finance Sunil Bhuta, who was responsible for handling the overall finance, accounts, audit and taxation functions for NuPower since its inception.
The CBI had on April 12 examined two company Directors — Mahesh Chandra Punglia and Umanath Vainkut Nayak.
Earlier, the agency had questioned Rajiv Kochhar, brother-in law of Chanda Kochhar, for five consecutive days.
The agency registered a preliminary inquiry against Deepak Kochhar, Videocon Group officials and others to determine any wrongdoing or otherwise in the sanction of the loan to the Videocon group by the ICICI Bank as part of a consortium of banks in 2012.
Chanda Kochhar had not been named in the preliminary inquiry, which followed news reports about the Videocon Chairman giving a loan of Rs 64 crore to a firm he jointly promoted with Deepak Kochhar, six months after his group got the Rs 3,250-crore loan. (IANS)
After a case against NDTV founders had been registered, the CBI raided the residence
The raids prompted the NDTV to respond by alleging that the investigating agency is acting “under pressure” and further calling the fiasco a ‘witch-hunt’
The case has been registered by the Banking Fraud Division of the CBI alleging the NDTV founders for defrauding the ICICI Bankalong with other violations
So the Central Bureau of Investigation (CBI) registered a case against NDTV founders – Prannoy Roy and wife Radhika Roy- on the 5th of June, 2017. Consequently, a day after, the investigative agency also raided the residences of Prannoy Roy and his wife, along with four other premises in Delhi and Dehradun belonging to promoters. Cases have been registered against their company RRPR Holding Ltd as well as ICICI Bank officials.
The FIR has been filed by Sanjay Dutt, a former consultant at NDTV. The NDTV is also being investigated by Income Tax Department and Enforcement Directorate when it was discovered that NDTV received funds from a foreign institution but settled the account at 80% less than the actual amount received.
The case comes as a consequence of an allegation against the founders for causing over Rs. 48 crore losses to ICICI bank. They are booked under the Indian Penal Code and Prevent of Corruption Act for criminal conspiracy, cheating, and criminal misconduct.
The ICICI had given the founders’ private holding company-RRPR Holding Private Ltd-a loan of Rs 366 crore. The Roys had guaranteed their NDTV shares at a price more than the prevailing price at Bombay Stock Exchange (BSE).
The loan was closed within a year, however, the interest was waived off resulting in a loss of Rs 48 crores for the bank. The equivalent amount was moved out of the holding company’s bank account.
The FIR report explicitly states that NDTV as well as ICICI “entered into a criminal conspiracy to transfer ownership of a news company, i.e NDTV, to a shell company against banking rule and SEBI Act.”
On the basis of last year’s letter by the Enforcement Directorate to the CBI showcasing irregularities by the ICICI bank, a FIR was registered.
The NDTV responded by calling the whole incident a ‘witch-hunt’ after stating that the founders have not defaulted any loans. The media organization has called Dutt’s allegations false. The NDTV and its allies have countered this as an attack on free speech.
The NDTV issued a statement calling this whole incident a ‘witch-hunt’ and a political attack on the freedom of speech. It also argued that the CBI has no jurisdiction to investigate such matters that concern the private banks and EVEN IF there has indeed been a loss incurred. CBI, in counter, has cited the example of ‘CBI vs Ramesh Gelli’ case which was ruled in the favor of the investigating agency. CBI has the right to investigate the matter.
It is worth noting that the CBI is not just investing the loan default case but violations of SEBI guidelines and RBI rules. NDTV’s decision to address the CBI as “acting under pressure” is shameful.
Dutt has also claimed that the collateral shares that the Roys had guaranteed were never notified to stock exchanges and SEBI. SEBI has also initiated a probe.
The priority of the investigation is to explore “wrongful gain” of Rs 48 crores to the Roys and their holding company. That clearly implies how NDTV’s claim that this whole fiasco is an “agenda” is simply not true.
NDTV and allies that have been questioning the investigations must understand deeper forms of suspicion that have surrounded the transactions.
Manisha Pande, from Newslaundry, has explained with the remarkable simplicity about the essential factor that investigations are to keep in mind. So RRPR, the holding company, received Rs. 403.85 crores from a shell company- Vishwapradhan Commercial Private Ltd. Now this shell company had received this same amount from Shinano Retail as a loan. The Shinano Retail is fully owned by Reliance Industrial Investments and Holding which received this same loan from the main source Reliance Ventures Ltd, subsidiary of Reliance Ltd.
Hence, Dutt urges to find out “who is the true owner of NDTV?” by calling it, what many would agree, a Hawala (money laundering) transaction.
Manisha Pande has thus rightly pointed out the “investigation cannot start and end at NDTV.” She continues “CBI would have to probe some other important people” especially since the trail points to other noticeable direction.
It is also worth noting how NDTV had been enjoying heavenly fortunes when the UPA came to power. The company raised $417 million in different parts of the world through 20 wholly-owned subsidiaries.
Therefore, while the mainstream media and Twitterites will continue to raise and justify political factors, continuing with their blame game and bargaining, at the end of the day it is the law which is over everything. The law and justice must prevail. None of the facts point to the CBI trying to “silence the media under pressure”.
– by Saksham Narula of NewsGram. Twitter: @Saksham2394