HYDERABAD: In connection to a fresh case, former CEO of TV9, V Ravi Prakash, was arrested by the Banjara Hills police on Saturday on charges of transferring Rs 18.31 crore to Clifford Pereira, director of the company, as a bonus amount, without the consent of the board of the new management of Alanda Media. The police produced him before the magistrate for judicial remand.
Alanda Media and Entertainment Private Limited (Alanda) acquired 90.54 per cent of the total equity share capital of TV9 on August 27, 2018.
In its complaint, it said that during verification of records and account statements since June, 2019 by the new board of directors, it came to light that Ravi Prakash and MKVN Murthy fraudulently drew huge sums and also paid Pereira by abusing their authority.
Alanda Media, the new management of TV9, lodged a complaint with the police stating that Ravi Prakash and former chief financial officer MKVN Murthy drew huge sums from the company’s bank accounts without substantiating any entitlement under the law, and didn’t follow the prescribed procedure or provide calculations.
The duo diverted funds from the official TV9 accounts without the proper approval of the directors and shareholders, which amounts to cheating, gross misappropriation of funds, and causing wrongful loss to the company.
“The cheques for remittance were issued by Ravi Prakash and Murthy even though they are not entitled to receive such huge amounts. They have no authority to pay for themselves without obtaining the shareholders’ approval. Ravi Prakash and Murthy are not entitled to receive such huge amounts.
"They were the directors and authorised signatories to the bank accounts as on the date of drawal of the sums, and by misusing their cheque power, which is to be used for the interest of the company, have drawn the amounts fraudulently and also issued the amounts to Clifford Pereira and misappropriated the funds of the company, committed the Criminal Breach of Trust reposed on them by the company,” the Alanda Media management said in its complaint.
The management added that Ravi Prakash and Murthy were directors of the Associated Broadcasting Company Private Limited (ABCPL) and entrusted with the domain of the company’s funds, and were expected to discharge their duties in trust and in the interest of the firm.
The amount misused by the duo was almost equivalent to the company’s profits in FY 2017-2018 and 2018-2019.
Based on the complaint, the police registered cases under Section 418 (Cheating with knowledge that wrongful loss may ensue to person whose interest the offender is bound to protect), 420 (cheating) and criminal breach of trust.