The Income Tax Department has clarified that there is no restriction on conversion of warrants into shares by RRPR Holdings in favour of Vishvapradhan Commercial Pvt., said New Delhi Television Ltd. in a disclosure to the stock exchanges.
The media company disclosed that it along with its promoter group vehicle, RRPR Holdings, has been notified by VCPL regarding a communication with the income tax authority.
The letter from the income tax authority dated Sept. 7, 2022 stated that “the prohibition under the above-mentioned orders u/s 281B during the period of their operation is on M/s. RRPR Holding Private Limited for selling or transfer of its shareholding in M/s. New Delhi Television Limited and from creating/causing any charge thereon only, irrespective of the shareholding pattern of M/s. RRPR Holding Private Limited and who exercises control thereon and not on the issuance of shares of M/s. RRPR Holding Private Ltd”.
On Aug. 31, NDTV had informed exchanges that its promoter group vehicle, RRPRH has intimated VCPL that as individuals, Radhika and Prannoy Roy, may individually require independent approval, under Section 281 of the Income Tax Act, from the income tax authorities, to deal with any assets, including indirect shareholding in NDTV, arising from sub judice (impugned) orders.
NDTV, in the filing said, VCPL had sent a letter to SEBI on Sept. 8 about its communication with the Income Tax Department which relies on,
Letter written to the income tax authority on Sept. 7, 2022; and
The reply dated Sept. 7, 2022, from the Additional Commissioner of Income Tax, Central Range-02, New Delhi confirming there are no restrictions on RRPRH acting on the VCPL exercise of option for converting its warrants into 99.50% equity shares of RRPR Holdings.
RRPR holds a 29.18% stake in NDTV.