Rs 350-cr ICICI loan to NDTV promoters allowed prepayment without penalty

It is alleged that reset of interest rate to less than 10% from 19% caused a loss of Rs 48 cr to ICICI Bank

A clause that enabled voluntary prepayment without penalty, a lien on over 60 per cent shares of the listed entity and closure terms linked to future market capitalisation are some key features of the loan agreement between ICICI Bank and RRPR Holdings, a promoter company of broadcaster New Delhi Television (NDTV).

The Rs 350-crore loan facility, extended in 2008 by the country’s largest private lender to the company, controlled by senior journalists Prannoy Roy and Radhika Roy, has become the subject of a Central Bureau of Investigation (CBI) probe. It is alleged that the prepayment and reset of interest rate