Former TV9 CEO Ravi Prakash held in cheating case

Hyderabad: Former CEO of TV9 Ravi Prakash was arrested by the Banjara Hills police on Saturday, reportedly in connection with cheating and gross misappropriation of funds of the  Associated Broadcasting Company Private Limited (ABCPL) and its shareholders. He underwent six hours of questioning by the Banjara Hills police.

According to the complaint lodged by G. Singa Rao, director of ABCPL, against Ravi Prakash and  M.K.V.N. Murthy, huge sums of money were drawn from the bank accounts of the company without substantiating any entitlement under law, without following the prescribed procedure and without providing any calculations and proper approval of the directors/shareholders, which amounts to cheating, gross misappropriation of funds, causing wrongful loss to the company and thereby getting personal
benefit.

During a verification of records and account statements since June 2019 by the new board of directors, it came to light that Mr Prakash and Mr Murthy fraudulently drew huge sums of money and also paid  Clifford Pereira, abusing their authority and signing the instruments. In nine months, Mr Prakash withdrew a total of Rs 18,31,75000 claiming it as bonus and ex gratia payments. Another Rs 11,74,51,808 was withdrawn from the account through cheques issued by the two persons.

“Mr Prakash and Mr Murthy, being in responsible positions as full time directors on the board of the company, who are expected to protect the interests of the company and its shareholders, have abused their positions and cheated the company, resulting in wrongful loss to the company and consequential wrongful gain to the above said persons,” the complaint said. Thus, these amounts are treated as illegal and wrongful withdrawal from the company. The Board of Directors at their meeting decided to file complaints and initiate the appropriate legal proceedings to recover the above said amounts. Following this, G. Singa Rao lodged the complaint at the Banjara Hills police station.