In a big setback to former chief executive officer (CEO) and founder of popular television channel TV9, the National Company Law Tribunal (NCLT) has declared that the takeover of Associated Broadcasting Company Limited, the promoter of TV9 group of channels, by the new promoters in August 2018 was completely legal.
The Hyderabad bench of the NCLT found fault with Ravi Prakash for creating troubles for new promoters including Jupalli Jagapathi Rao and other directors.
Declaring Ravi Prakash’s move as illegal, the tribunal directed that Ravi Prakash and his associate K V N Murthy pay Rs 10 lakh to the defendants as compensation.
The NCLT clearly said all the transactions in the takeover of TV9 by the new management had taken place with full knowledge of Ravi Prakash.
“He was part of the entire deal and so, he cannot challenge the takeover deal,” it said.
In September 2020, Ravi Prakash moved a petition before the NCLT seeking to take over Associated Broadcasting Company Private Limited.
He requested that the NCLT allow him to acquire majority stake in ABCL, which he alleged has been running in huge losses ever since the new board of directors sacked him and took over the company in May 2019.
It may be mentioned that Alanda Media and Entertainment Limited, a joint venture of My Home Group and Megha Engineering and Infrastructure Limited (MEIL), had taken over ABCL by acquiring 90.54 per cent shares in August 2018 and appointed the new board in May 2019.
Ravi Prakash said the company’s share value had come down from Rs 252 to Rs 78.32 and the company which was in profits of Rs 30.16 crore had plunged into a loss of Rs 43.51 crore, as per the latest valuation report of the company in August 2020.
He told the court that when he wanted to dispose of his 8.82 per cent stake in the company at the original rate of Rs 252 per share, the company had shown this latest valuation report, saying the share value had come down to Rs 78.32.
“Since the company is not in a position to run the channel professionally and is incurring losses, I want to by the majority shares at the rate of Rs 78.32, a price quoted by the present board. I request the NCLT to allow me to buy the shares and take over the company,” Ravi Prakash said.
