NDTV threatens to sue its shareholder Sanjay Dutt of Quantum Securities
July 25, 2013
In probably the first such action in India, NDTV, through its law firm Amarchand Mangaldas has sent a legal notice to Sanjay Dutt, who holds a 1% stake in the broadcasting company for raising questions about its corporate policies and practices
In June, Moneylife wrote how Sanjay Dutt, director of Quantum Securities, has levelled a series of allegations about wrong practices and poor governance at NDTV Ltd. He made these charges in writing to almost every regulatory authority in India – the Ministry of Corporate Affairs, the Securities & Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and other institutional investors. See our reportAllegations of NDTV’s Many Shenanigans. Following our article, on 27th June 2013, NDTV Ltd sent a legal notice to Quantum Securities, Sanjay Dutt and directors of the company, (27th June 2013) through its law firm Amarchand Mangaldas accusing him of making defamatory statements, writing to various regulators and ‘launching a tirade’ against NDTV because he bears a ‘grudge’ against the broadcaster. This is probably the first time that charges by a significant shareholder have been termed ‘defamatory’ by a company, mainly because he was a ‘remunerated consultant’ sometime in the past. Mr Dutt and his firm Quantum Securities hold a significant stake in NDTV.