Adani Group rejects NDTV claim of prior I-T department nod – Times of India

MUMBAI: Adani Group will require prior clearance from the income tax department to acquire any stake in New Delhi Television (NDTV) from its founders, the media house has said. Adani Group, however, rejected the claim, saying that it lacked merit and was misconceived.
In 2017, I-T department had attached the founders’ – Prannoy and Radhika Roy‘s – 29% stake in NDTV held through their investment company RRPR and had barred them from selling their interests as part of a reassessment of their taxes, the media company said.
“The I-T order only applies to the shares of NDTV held by RRPR and in no manner restricts RRPR from completing the formalities in relation to allotment of equity shares to VCPL on exercise of the warrants,” Adani Group said.
Adani had acquired VCPL – an indirect shareholder of NDTV- and had sought control of the news network. In 2009-10, VCPL lent Rs 404 crore to RRPR, which then issued warrants against the loan to the company. VCPL, after it was taken over by Adani, has now sought to convert the warrants into equity shares of RRPR. The conversion will give VCPL 99.5% stake in RRPR, which will help it gain 29% in NDTV.
NDTV said I-T department was already reviewing whether the loan gave rise to a capital gain tax of Rs 175 crore based on allegations that they amounted to a sale of controlling interest in NDTV to VCPL.

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