Adani group rejects NDTV claims on need for tax clearance
SUBSCRIBE
JOBS
Custom Image
Go Back
2 years ago 06:00:22am Television

Adani group rejects NDTV claims on need for tax clearance

New Delhi, 30-November-2022, By IBW Team

NDTV founders’ entity issues shares to Adani group

The Adani group rejected claims by New Delhi Television Ltd. (NDTV) that a major stake sale by its founders would require clearance from India’s tax authorities, as a public wrangle to take control of the popular news network intensified.

The Adani conglomerate run by India’s richest man, Gautam Adani, last week unveiled plans to acquire a majority stake in the news network.

NDTV late on Wednesday said the income tax department in 2017 provisionally barred the network’s founders — Prannoy and Radhika Roy — from selling a part of their stake as part of a reassessment of their taxes.

But Adani said on Thursday no such approval was required and that the founders tried “to further inordinately delay” the deal, Reuters reported from Mumbai.

Shares in NDTV rose to the maximum permitted limit of 5 percent in morning trade on Thursday, their sixth straight day of gains after Adani’s announcement. The shares are currently trading at their highest level in more than 14 years.

Adani, through its media unit, has acquired a little-known Indian company that lent Rs. 4 billion ($50 million) to NDTV’s founders more than a decade ago in exchange for warrants that allowed the company to acquire a stake of just over 29 percent in the news group at any time.

Adani Group said last week it had exercised those rights, which NDTV said was done without its consent, and by doing so crossed a threshold mandating it to make a tender offer to NDTV’s shareholders to acquire a majority stake.

NDTV said, however, that tax authorities were reviewing whether the loans gave rise to a capital gains tax obligation, which effectively would put Adani’s bid on hold.

In its statement, Adani group said the tax review concerned only Roys’ investment company and did not prevent the founders from selling their stake, calling on them to process the deal “without any further delay”.

India’s tax authorities did not immediately respond to requests for comment.

Both sides have also separately asked the market regulator whether the Roys were allowed to sell their stake in the network given they were previously prohibited from dealing in India’s securities market following an insider trading case.


Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Our Events

  • img
    SatCab Symposium

    SatCab symposium organized by Aavishkar Media Group is an annual event. It's a well-informed event where we have a panel discussion on the current affairs and future forecasting on our industry.

  • img
    BCS
    Ratna Awards

    BCS Ratna Award organized by Aavishkar Media Group is an annual event. In this award function, a community of our industry is honored by receiving the award for the contribution of their work.

  • img
    Chetna Yatra

    Chetna Yatra organized by Aavishkar Media Group is an annual event. Held by Dr. AK Rastogi, Chairman of Aavishkar Media Group. Pilgrimage India in his car for connecting the people of our industry.

  • img
    Imaan India Sammaan

    Imaan India Samman is an event mobilized by Aavishkar Media Group, which was launched in 2012. Giving the award to the NGOs for giving their contribution to society.

Youtube Videos