Thiruvananthapuram, 11 September (H.S.): A Special Investigation Team (SIT) of the Goods and Services Tax Department has questioned the claim that Rs 213 crore transferred to Reporter TV constituted legitimate loans.

According to the SIT's findings, a chit fund company transferred Rs 137.15 crore to the media company. However, documents reportedly show that the Reporter company's board approved a transaction involving only Rs 100 crore. Investigators said there was no clarity on how the remaining Rs 37.15 crore was transferred or accounted for.

The SIT found no evidence showing that the chit fund company's board of directors had approved the transfer of the amount. It further observed that the stipulated repayment conditions had not been followed.

Investigators said the only security purportedly obtained for the transaction consisted of signed cheques. The absence of adequate collateral, repayment compliance and board-level approvals has raised doubts over whether the transaction could be treated as a genuine loan, the investigation team said.

The SIT identified suspected irregularities in another transaction involving Rs 75 crore received from a second private company. According to the investigators, the loan was secured against a property whose value had allegedly been grossly inflated.

The property, located in Thrikkakara North village, was valued at Rs 9.94 crore in 2024. However, within a year, its declared valuation reportedly increased nearly fifteen-fold to Rs 154 crore. On the basis of this enhanced valuation, the company allegedly secured a loan of Rs 75 crore.

The investigation team described the sharp rise in the property's valuation as unusual and recommended a separate inquiry by the Registration Department. Such an investigation should determine how the value was revised, who carried out the assessment and whether statutory procedures were followed.

The findings concerning both transactions are expected to form part of the continuing investigation into the company's financial dealings.

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Hindusthan Samachar / Arun Lakshman