According to the complainant, they were not entitled to receive such huge amounts, knowing fully that they have no authority to pay for themselves without obtaining approval of the shareholders/directors, police said
Former TV9 channel CEO Ravi Prakashwas was arrested on October 5 for allegedly cheating and fraudulently withdrawing huge sums from the bank accounts of the company and misappropriating funds, police said.
Alanda Media and Entertainment had bought a 90 per cent stake in Associated Broadcasting Company Limited (ABCL) in August 2018 and became a major shareholder and acquired the ownership of the company, which runs 24 hour news channels in several languages under the TV9 logo.
According to a complaint filed by a whole time director of ABCL, Prakash, earlier a director of the ABCL and authorised signatory to operate bank accounts, had drawn the amounts fraudulently during June 2018 and May 2019 to the tune of Rs 18 crore along with another person, who was also a former director.
According to the complainant, they were not entitled to receive such huge amounts, knowing fully that they have no authority to pay for themselves without obtaining approval of the shareholders/directors and they were not entitled to receive such huge amounts, police said.
The amounts were claimed as bonus and ex-gratia and the net TDS amount reflected in the bank statement was less as against withdrawn amount, police said.
It was during verification of records and account statements since June 2019 by the new Board of Directors that itcame to light that Prakash had fraudulently drawn huge sums and madewrongful gain, the complaint said.
The Board of Directors at their meeting held on September 24,had deliberations about the fraudulent withdrawal and decided to file the complaint. The Board accused Prakash of cheating, gross misappropriation of funds and causing wrongful loss to ABCL and its shareholders by drawing huge sums without any proper authorisation and approval.
Based on the complaint a case under relevant IPC sections was registered against Prakash and he was arrested, a senior police official told PTI.The Cyberabad Police on May 9 had filed a case againstPrakashfor allegedly cheating the company's promoters by forging documents and also under different IT Acts following a complaint that he had created fake documents and was trying to prevent the new management of the company from taking over operations.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.