Figment of imagination: SAT on charges against NDTV’s Radhika & Prannoy Roy

SAT has ruled that allegations that Founders Radhika and Prannoy Roy ceded control of NDTV through a personal loan is "wholly erroneous"

by exchange4media Staff
Published: Jul 23, 2022 11:38 AM | 1 min read

The Securities Appellate Tribunal (SAT) has, ruled that allegations that the founders of NDTV, Radhika and Prannoy Roy, ceded control of New Delhi Television Limited through a personal loan taken in 2009-10 are "a figment of imagination", "against the material evidence on record" and "wholly erroneous", according to media reports.

SAT has ruled this in its order dated July 20, 2022.

"The transaction does not acquire direct or indirect control of NDTV. The intent and language of the loan agreement and call option agreements read with the SAST Regulations makes it clear that there is no direct or indirect control of NDTV by VCPL," SAT said while declaring completely legitimate the terms of the personal loan between the NDTV founders and a company named Vishvapradhan Commercial Private Limited (VCPL), reports stated quoting the verdict.

SAT's verdict overturns an earlier order by SEBI dated June 14, 2019, and states the order which had barred them "from accessing the securities market or from accepting any position of a Director is totally out of context and does not commensurate with the alleged violation especially when no fraud has been committed nor does the loan agreement defraud the investors."