Delhi Court Accepts CBI Closure Report In NDTV Loan Repayment Case

NDTV Loan Repayment Case

A Delhi court has approved a closure report submitted by the Central Bureau of Investigation (CBI) regarding alleged irregularities in loan repayments made by NDTV to ICICI Bank.

Special Judge Shailender Malik deemed the report satisfactory after reviewing its findings and hearing submissions from the CBI and the complainant, who expressed no intention to challenge the investigation.

The court stated, “After reviewing the entire closure report, accompanying documents, and submissions from the public prosecutor, as well as the complainant’s statement of satisfaction with the investigation, this court accepts the closure report. No criminality or violation of Section 19(2) of the Banking Regulation Act, 1949, was found against any of the accused. The report appears satisfactory and is, therefore, accepted.”

Background and Allegations

The investigation stemmed from a complaint filed by Sanjay Dutt of Quantum Securities Limited. He alleged that in 2008, ICICI Bank had granted a loan of ₹375 crore to NDTV, using 61% of the shares held by promoters Prannoy Roy and Radhika Roy as collateral. The case was initially lodged based on suspicions of collusion and misuse of power.

However, after a six-year probe, the CBI concluded in its October 2022 report that there was no evidence of criminal intent, conspiracy, or abuse of position by ICICI Bank officials or the NDTV promoters.

CBI’s Findings

The CBI emphasized that the loan repayment, which was made at a reduced interest rate, was consistent with standard banking practices and not an exceptional case. The report stated that the repayment was “higher than the average cost of funds,” ruling out any financial irregularities.

Additionally, a forensic audit conducted by Pramod Kumar and Associates supported the findings, describing the repayment as a “routine business transaction” and confirming there were no violations of the Banking Regulation Act.

Broader Context

The investigation’s resolution coincides with significant changes at NDTV. In 2022, the Adani Group acquired a controlling stake in the media company by purchasing shares from the Roys at a premium of 17% over the price offered to minority shareholders.

With the court’s acceptance of the closure report, the allegations of irregularities involving ICICI Bank and NDTV have been laid to rest. The decision underscores the lack of evidence to substantiate claims of wrongdoing in the loan transactions.