Wednesday, 15 March 2017

Fwd: Complaint of money laundering and corruption against NDTV Ltd and General Electric Company arising out of the order dated 31.12.2013 of the Income Tax Dispute Resolution Panel –II in the case of NDTV Ltd pertaining to the assessment year 2009-2010


---------- Forwarded message ----------
From: Seema Sapra <seema.sapra@googlemail.com>
Date: Wed, Mar 15, 2017 at 6:08 PM
Subject: Complaint of money laundering and corruption against NDTV Ltd and General Electric Company arising out of the order dated 31.12.2013 of the Income Tax Dispute Resolution Panel –II in the case of NDTV Ltd pertaining to the assessment year 2009-2010
To: "sho-cp-dl@nic.in" <sho-cp-dl@nic.in>, "banmali.agrawala@ge.com" <banmali.agrawala@ge.com>, "sho-patelngr-dl@nic.in" <sho-patelngr-dl@nic.in>, "cp.ggn@hry.nic.in" <cp.ggn@hry.nic.in>, "pmosb@nic.in" <pmosb@nic.in>, "ashish.sawkar@ic.fbi.gov" <ashish.sawkar@ic.fbi.gov>, "NDwebmail@state.gov" <NDwebmail@state.gov>, "president@whitehouse.gov" <president@whitehouse.gov>, "sho-defenceclny-dl@nic.in" <sho-defenceclny-dl@nic.in>, "dcbi@cbi.gov.in" <dcbi@cbi.gov.in>, "fcpa.fraud@usdoj.gov" <fcpa.fraud@usdoj.gov>, "sho-tuglakrd-dl@nic.in" <sho-tuglakrd-dl@nic.in>, "sho-amarclny-dl@nic.in" <sho-amarclny-dl@nic.in>, "EthicsAndCompliance@starbucks.com" <EthicsAndCompliance@starbucks.com>, "jeffrey.immelt@ge.com" <jeffrey.immelt@ge.com>, "chairmanoffice@sec.gov" <chairmanoffice@sec.gov>, "ny1@ic.fbi.gov" <ny1@ic.fbi.gov>, "Suhel.Daud@ic.fbi.gov" <Suhel.Daud@ic.fbi.gov>, "sumi.ghosh@starbucks.com" <sumi.ghosh@starbucks.com>, "rg.dhc@nic.in" <rg.dhc@nic.in>, "sho-safdarjung-dl@nic.in" <sho-safdarjung-dl@nic.in>, "sho-tilakmarg-dl@nic.in" <sho-tilakmarg-dl@nic.in>, hschultz <hschultz@starbucks.com>, "sho-crpark-dl@nic.in" <sho-crpark-dl@nic.in>, "sho-hauzkhas-dl@nic.in" <sho-hauzkhas-dl@nic.in>, "sho-gk-dl@nic.in" <sho-gk-dl@nic.in>, "john.flannery@ge.com" <john.flannery@ge.com>, "Dimitrief, Alexander (GE, Corporate)" <alexander.dimitrief@ge.com>, Ashish Sawkar <ashish.sawkar@gmail.com>, "sho-ptstreet-dl@nic.in" <sho-ptstreet-dl@nic.in>, "sho-daryaganj-dl@nic.in" <sho-daryaganj-dl@nic.in>, cp.amulyapatnaik@delhipolice.gov.in, sg.rmaithani@sci.nic.in, jeff.sessions@usdoj.gov
Cc: Sapra <seemasapra@hotmail.com>, Seema Sapra <seema.sapra@gmail.com>


See the two news reports below. 

Any comment from GE, or from the US SEC or DOJ or FBI on GE's role in this. 

NDTV is trying to escape by invoking the name of General Electric Company and Jeffrey Immelt. 

Seema Sapra 
General Electric Company whistleblower 


"Delhi High Court ratifies Income Tax fine of Rs.525 cr ($80 M) on NDTV. Quashes Stay Order of Tribunal
In what could be a final nail on the coffin, NDTV has been asked to pay the fine levied by the Income Tax Department

By Team PGurus -  March 14, 2017
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In what could be a final nail on the coffin, NDTV has been asked to pay the fine levied by the Income Tax Department
In what could be a final nail on the coffin, NDTV has been asked to pay the fine levied by the Income Tax Department
In a big setback to New Delhi Television (NDTV), Delhi High Court (HC) on Tuesday quashed the stay order given by Income Tax Appellate Tribunal (ITAT) stopping the Income Tax Department from levying a fine of Rs.525 crores ($80 million). The Division Bench comprising of Justice Ravindra Bhat and Justice Najmi Waziri upheld the Income Tax decision to fine Rs.525 crores on NDTV for tax evasion in 2008. The HC also said that the stay order given by ITAT was totally wrong and the Tribunal had exceeded its powers.
It is still intriguing as to why GE put money in NDTV through subsidiaries and that too through tax havens.


NDTV obtained a stay from ITAT on September 2016, when Income Tax found that the TV channel had illegally routed money through Bermuda. Around Rs.642 crores ($98 million – $150 million in 2008) was routed in 2008 through US giant General Electrical (GE) subsidiary in USA via Bermuda and NDTV received this money through its shell company registered in Netherlands. This dubious deal took place when P Chidambaram was the Finance Minister and many Income Tax officers who challenged this deal were punished by the Congress regime.

At last Income Tax in June 2016 slapped fine of Rs.525 crores ($80 million) for this illegal routing of money and hushing up of money flow. NDTV even claimed to Income Tax that they tried to sell a dream and it did not materialize. Later NDTV's senior staffers Vikram Chandra and K V L Narayan Rao confessed to Income Tax about the illegal money routing from GE's subsidiary in USA via Bermuda and Netherlands.

It must be noted that in those days (2008), GE was trying to make a deal worth Rs.16000 crores ($2.432 billion) with Indian Railways for building electric locomotive engine and it collapsed after officers found forgery of documents. Those days Chidambaram and Planning Commission Deputy Chairperson Montek Singh Ahluwalia were supporting this deal. GE was a diesel locomotive manufacturer and was not eligible to bid for electric locomotives. It is still intriguing as to why GE put money in NDTV through subsidiaries and that too through tax havens.

Delhi High Court's Order is going to create huge problem for NDTV as it has to pay Rs.525 crores. NDTV is now facing a serious cash crunch and several staffers have been retrenched in the past few months. Moreover NDTV's move to compound the Enforcement Directorate's fine of Rs.2030 crores ($309 million) was also rejected by RBI. These developments are expected to challenge even the day-to-day running of the TV channel. Is the denouement near?" 

And 


"Delhi HC vacates ITAT stay on Rs525 crore penalty on NDTV
Moneylife Digital Team
15 March 2017  1   

The Delhi High Court has vacated a stay granted by the Income Tax Appellate Tribunal (ITAT) on the Rs525 crore penalty on New Delhi Television Ltd (NDTV), saying that the Tribunal does not have any powers in this matter. This is a big setback to the Prannoy Roy-controlled NDTV within this month.
 
The Delhi High Court was hearing the case (W.P.(C)­1327/2017) related with a stay granted by the ITAT on 15 September 2016. In its order, the ITAT had directed Income Tax (I-T) Department not to pass any order for the proposed penalty of Rs525 crore against NDTV till final disposal of the main appeal pending before the Tribunal. 
 
However, the HC Bench of Justice S Ravindra Bhat and Justice Najmi Waziri felt that, in such matters, the ITAT does not have any powers in the penalty matter and hence the stay given by the Tribunal was vacated. 
 
A senior official from NDTV said the company will appeal against the ruling of Delhi High Court. "This entire case relates to a baseless and outrageous charge by the Income Tax department that in effect accuses (Jeff Immelt, CEO) GE (US) as well as (Jeff Zucker, then CEO) NBC (US) of money laundering -- which is an offence that is punishable with jail in the US. In 2008, NBC (a 100% subsidiary of GE) invested $150 million in an entertainment wing of NDTV. Subsequently, without any evidence whatsoever, the I-T Department in Delhi called this legitimate investment a 'sham transaction' and in effect accused NDTV of round tripping money and using NBC and GE to act as a 'front' in a case of money laundering by GE and NBC," says KVL Narayana Rao, Group Chief Executive & Executive Vice Chairperson of NDTV, in an email reply.
 
He says, "The ITAT has been unable to hear the case as the Delhi I-T Department has asked for 20 consecutive adjournments - with a succession of flimsy excuses. With the basic case not even being heard, the Delhi I-T department suddenly tried to levy a further penalty on NDTV for a delay in the case. Please note the delay is entirely the fault of the Delhi IT dept. asking for adjournments. The ITAT stayed the penalty. Now the Delhi High Court has ruled that the ITAT does not have the authority to stay the penalty. The Delhi I-T department's accusations against GE, NBC and NDTV are very damaging for the global image of India.  With all due respect to the High Court, NDTV will appeal against this ruling."
 
Earlier this month, the Reserve Bank of India (RBI) rejected NDTV's application to compound from the Rs2,030 crore notice issued by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA). "Filing compounding application to RBI by those who served notice under FEMA means that they have admitted their contravention in routing money from abroad and plead guilty by paying a fine. So NDTV admitted its guilt and offered its readiness to pay a fine. Many FEMA defaulters were using this compounding method to escape from being prosecuted under the FEMA. Continuing prosecution under FEMA also has a danger of converting the case to PMLA, when money laundering is established," says an article in PGurus.com. 
 
However, according to Mr Narayan Rao, the RBI has not rejected NDTV's application for settlement under FEMA provisions. "The RBI has asked NDTV to approach a particular division of the RBI called the Foreign Investment Division of RBI's Central Office," he said.
 
Earlier in November 2015, the ED had slapped a Rs2,030 crore notice on NDTV for allegedly violating FEMA provisions for routing huge funds through the channel's foreign units. The notice served to promoters Prannoy Roy, his wife Radhika Roy and senior executive KVL Narayan Rao stated that NDTV had violated RBI provisions on fund transfers." 



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