Show-cause notice to NDTV by ED

New Delhi Television (NDTV) has received a show-cause notice from the Enforcement Directorate about alleged violations of the Foreign Exchange Management Act (Fema).

NDTV informed the BSE it had, along with co-chairpersons Prannoy Roy and Radhika Roy, and executive vice-chairperson K V L Narayan Rao and NDTV Studios, received a show-cause notice on Thursday from the Enforcement Directorate (ED) as to why adjudication proceedings should not be held for alleged contraventions of provisions of Fema.

The company said it had been advised that the allegations of the contraventions of provisions of Fema in the notice were not legally tenable. It said it would reply to the notice. On September 30, NDTV had replied to a clarification sought by the BSE on tweets alleging the ED had registered a case against the company and some of its officials, wherein it had said that such reports were false and baseless. It had clarified the ED had sought certain information/documents from the company, and that the company was assisting the ED in providing the requested information. The company had also clarified that there had not been any show-cause notice nor any action/case registered against the company or any of its officials by the ED.

NDTV informed the stock exchanges of this development before the markets opened. Its stock tanked seven per cent intra-day but recovered to close 2.6 per cent lower than Thursday's close of Rs 85.7 on the BSE.