NDTV’s founders prevented from leaving country, LOC issued in June

On August 9, NDTV founders Prannoy Roy and Radhika Roy were prevented from leaving the country. The basis of this was a lookout circular (LOC) issued in relation to a two-year-old case filed by the Central Bureau of Investigation (CBI). The couple was supposed to board a Kenya Airways flight to Nairobi from the Mumbai airport at 4.45 pm. According to NDTV, the couple was scheduled to return on August 15.

In its statement, the channel also stated: “They (the couple) have been stopped from travelling abroad on the basis of a fake and wholly unsubstantiated corruption case initiated by the CBI that was filed two years ago and in which Radhika and Prannoy Roy have been fully cooperating. Today’s action is, along with events like raids on media owners, a warning to the media to fall in line – or else.”

On June 2, 2017, an FIR was registered against Prannoy and Radhika Roy by the CBI. The other accused in the case were RRPR Holding Pvt Ltd, NDTV India Ltd, unknown officials of ICICI Bank and some other unknown people. The FIR states: “ICICI Bank allegedly conniving, committing fraud & entering into a conspiracy with Promoters of NDTV in facilitating the transfer of ownership of a News Broadcasting Co…to a “Khoka/Shell” company. All these acts committed being in violation of the Banking Regulation Act, SEBI Act, MIB Regulations and MHA national security norms for a new media company.”

The FIR also states: “Pecuniary loss of over ₹48 crore to ICICI bank arising out of unlawful/undue favour and profit transferred to promoters of NDTV being – Dr Prannoy, Mrs Radhik Roy and RRPR Holding Pvt Ltd.”

It is significant to note in June, earlier this year, the Securities & Exchange Board of India had barred the Roys from occupying directorial or key managerial positions in the channel for a period of two years. This order was later stayed by the Securities Appellate Tribunal. 

Speaking to Newslaundry, CBI spokesperson Nitin Wakhankar said, “The preventive LOC was issued in June. Under a preventive LOC, a person cannot leave the country.” When questioned whether the couple has made any more foreign visits following the issuance of the LOC, Wakhankar said, “We don’t have any idea about it.”

Newslaundry also contacted Sonia Singh, NDTV’s editorial director, and Suparna Singh, the channel’s CEO. They asked for the August 9 statement to be considered the channel’s official response as of now.

The issuance of LOCs is administered by the Ministry of Home Affairs. As per MHA guidelines, “Circulars are issued by various authorities to keep an eye on the arrival and departure of Indians and foreigners. These authorities include the Ministry of External Affairs, the Customs and Income Tax Departments, Directorate of Revenue Intelligence, Central Bureau of Investigation, Interpol, Regional passport Officers, Police authorities in various states etc. Its has further been stated that unless otherwise specified in the warning circular itself, the circulars issued by any of the various authorities specified above will be regarded as invalid if it more than one year old and the card will be weeded out.”

It is significant to note that Delhi High Court in a judgement dated August 11, 2010, had said, “Recourse to LOC can be taken by investigating agency in cognisable offences under the IPC or other penal laws, where the accused was deliberately evading arrest or not appearing in the trial court despite non-bailable warrants and other coercive measures and there was the likelihood of the accused leaving the country to evade trial or arrest.” 

However, none of these conditions applies to the present case against the Roys. They have not been booked for non-bailable offence and have not tried to evade the arrest.