Ever since the news broke out that Adani is all set to wrest control of NDTV, it was obvious that NDTV will cry foul. While it is our moral duty to let them mourn for such a huge loss, it needs to be unveiled why the media organization has gone berserk.
Adani’s takeover of NDTV
Gautam Adani, the richest man in Asia, has bought (indirectly) a 29% stake in NDTV, the media venture of Prannoy Roy and Radhika Roy. The Adani group has floated an open offer for another 26% share, which is currently owned by various retail and institutional investors. If Adani group is able to get another 26% through an open offer, it will become the majority stakeholder in NDTV.
This is the reason why NDTV and Adani have locked horns in public. NDTV, obviously, is unhappy with the bid of Adani to take over the former. Thus, it started claiming that the exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders.
NDTV counters Adani on regulatory grounds
NDTV, with no option left to counter Adani, started claiming that regulatory curbs restricted the news network’s founders from selling their stake in the company. It claimed that the SEBI in November 2020 banned its promoters for two years from buying or selling shares and any share transfer related to the news network’s acquisition. It went on to claim that the Adani group would require the regulator’s approval.
Adani gives it back
Adani, however, gives it back to NDTV in his own style. He called NDTV’s arguments “baseless”, saying NDTV is legally bound to immediately transfer the shares. Adani says “the Roys’ entity is not subject to the market regulator’s trading restriction on the Roys themselves.”
Adani Enterprises Ltd asked the broadcaster “to immediately fulfill the contract obligation to allot equity shares.”
Read more: How Gautam Adani executed a boardroom coup to wrest control of NDTV
The reason why Adani came out with such arguments lies in a loan agreement signed by RRPR and Vishvapradhan Commercial Pvt. Ltd (VCPL) on 21 July 2009. The loan agreement gave VCPL effective control of 52 percent shares of NDTV through various clauses. Under the agreement, Roy gave 99.99 percent shares of RRPR to VCPL, which the latter could claim at any time between 10-year loan period or even after the tenure.
NDTV is in deep trouble
You see, NDTV is in deep trouble. Its problems are getting worse with each passing day. Unfortunately, its political patron is also not in power. The so-called independent media is popular among the masses for its agenda-driven journalism to prioritize agenda over truth, and vicious hatred for a particular party. Such bias has led its viewership to decrease drastically but still, it kept on peddling its anti-India and anti-Hindu propaganda.
Gautam Adani, on the other hand, is believed to be close to the administration of Prime Minister Narendra Modi. The tycoon’s fortune has soared in recent years, especially after the Modi government stormed to power.
This is the reason why NDTV is crying hoarse over the takeover. What they are actually worried about is that they will lose their ‘editorial independence’ which by default means nothing but the criticism of government policies and especially PM Modi. NDTV, thus, is trying every trick in the book to prevent Adani’s control over it.
However, due to the loan agreement, Roys does not have much legal recourse left. The agreement has tied Roys’ hands. Brace yourself for a new and propaganda-free NDTV.
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