CBI issues statement on raids against NDTV's Prannoy Roy, here's what the agency has to say - FULL TEXT

New Delhi: Issuing an official statement, the CBI on Tuesday sought to clarify its decision on carrying out raids against NDTV bosses saying the agency respects freedom of press and the action was taken as per the due process of law.

The statement comes in the wake of various media organisations, including the much-powerful Editors Guild of India, expressing deep concern over the raids conducted by the CBI on the offices of NDTV and its promoters.

"Entry of police and other agencies into the media offices is a serious matter," the Editors Guild statement had said after the raids on Monday.

The agency said it has not conducted any search on the registered office of NDTV, media studio, news room or premises connected with media operations.

"CBI fully respects the freedom of press and is committed to the free functioning of news operations," it said and clarified that the allegations under investigation are not regarding the default in loan repayment.

The allegations "relate to the wrongful gain of Rs 48 crore to the promoters--Prannoy Roy, Radhika Roy, RRPR Holdings Pvt Ltd and a corresponding wrongful loss to the ICICI bank arising from their collusion and criminal conspiracy," the CBI said.

NDTV in its statement on Monday had termed the action of the CBI to register FIR and carry out searches at Roys' as an attempt to muzzle the media.

The ruling party politicians could not "stomach" the "independence and fearlessness" of NDTV's team and the CBI raid is merely another attempt at silencing the media, it had said.

The CBI, while advising restraint, said denigrating the allegations at this stage of probe and wrongly accusing the agency of acting under pressure is uncalled for and an attempt to malign the image of the agency.

"The investigation is being conducted as per the due process of law and under the jurisdiction of the court of law.

The result of investigation will be filed before the competent court of law based on the evidence adduced during investigation," it said.

The agency said it has registered the case based on the complaint of a share holder of ICICI bank and NDTV after carrying out due diligence.

Referring tno the statement of NDTV about never having defaulted on any loan, the CBI alleged that the probe would revolve around why ICICI bank took the entire shareholdig of the promoters in NDTV (nearly 61 per cent) as collateral and reduced the interest rates from 19 per cent to 9.5 per cent.

Contesting NDTV's questions raised over the jurisdiction of the CBI when ICICI was a private bank, the CBI referred to an order of the Supreme Court in the case of Ramesh Gelli versus CBI of 2016 where the apex court has held that the provisions of Prevention of Corruption Act, 1988 are applicable to the officials of private banks.

"Therefore, CBI has jurisdiction to take up investigation of the cases of private banks," it said and assured the agency was committed to carry out the investigation expeditiously and in accordance with the due process of law.

FULL TEXT of the statement issued by CBI

CLARIFICATION RELATING TO NEWS REPORTS / STATEMENT BY NDTV

Press Release
New Delhi, 06.06.2017

            Reports in sections of the media have raised certain issues and the statement issued by NDTV has levelled certain allegations against the CBI investigation in the case relating to the promoters of NDTV and others.

            It is clarified that searches have been carried out at the premises of the promoters and their offices based on search warrants issued by the Competent Court. CBI has not conducted any search of registered office of NDTV, media studio, news room or premises connected with media operations. CBI fully respects the freedom of press and is committed to the free functioning of news operations.

            CBI has registered the case based on the complaint of a share holder of ICICI bank and NDTV after carrying out due diligence. Denigrating the allegations at this stage of investigation and wrongly accusing the agency of acting under pressure is uncalled for and an attempt to malign the image of the CBI. The investigation is being conducted as per the due process of law and under the jurisdiction of the Court of law. The result of investigation will be filed before the competent Court of law based on the evidence adduced during investigation.

            It has been mentioned in the statement of NDTV that NDTV and its promoters have never defaulted on any loan. The allegations under investigation are not regarding the default in loan repayment; but relate to the wrongful gain of Rs 48 crore to the promoters – Dr. Prannoy Roy, Smt Radhika Roy, M/s RRPR Holdings Pvt Ltd and a corresponding wrongful loss to the ICICI bank arising from their collusion and criminal conspiracy. It is alleged in the complaint that the promoters of NDTV - Dr. Prannoy Roy, Smt Radhika Roy and M/s RRPR Holdings Pvt Ltd, acting in criminal conspiracy with unknown officials of ICICI bank, violated section 19(2) of the Banking Regulation Act, the Master Circular DBOD No. Dir B90/13.07.05/98-99 dated 28.08.1998 of the Reserve Bank of India and in furtherance of the conspiracy, ICICI bank took the entire shareholding of the promoters in NDTV(nearly 61 %) as collateral and then accepted prepayment of the loan by reducing the interest rate from 19 % p.a to nearly 9.5 % p.a and as a consequence thereof, causing a wrongful loss of Rs 48 crore to ICICI bank and a corresponding wrongful gain to the promoters of NDTV - Dr. Prannoy Roy, Smt Radhika Roy and M/s RRPR Holdings Pvt Ltd.

            NDTV in its statement questions the jurisdiction of CBI by stating that ICICI is a private bank. It is clarified that the Honourable Supreme Court in the case of Ramesh Gelli vs CBI of 2016, held that the provisions of Prevention of Corruption Act, 1988 are applicable to the officials of private banks. Therefore, CBI has jurisdiction to take up investigation of the cases of private banks.

            We urge all concerned to exercise restraint and to cooperate with the investigation. CBI is committed to carrying out the investigation expeditiously and in accordance with the due process of law. CBI reiterates its commitment to the motto i.e. Industry, Impartiality and Integrity.

            It is requested that the full text of the above clarification may please be telecast in your channel at the earliest / published prominently in tomorrow’s newspaper.

SCREENSHOT of the statement by CBI