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Zee Entertainment faces fresh woes as SEBI uncovers $240 million discrepancy
As per reports, this figure is roughly ten times larger than SEBI's initial estimates, raising concerns about financial irregularities within Zee.
This development mirrors an ongoing dispute between Tata Play and Culver Max Entertainment (formerly Sony Pictures Networks India).
Securities and Exchange Board of India (SEBI), has discovered a significant discrepancy of over $240 million in the accounts of Zee Entertainment Enterprises Ltd. (Zee), according to sources familiar with the matter cited by Bloomberg.
This revelation comes in days after the company’s fallout with Sony on the $10 merger.
SEBI's investigation into Zee's founders, primarily focusing on Subhash Chandra and Puneet Goenka, reportedly uncovered the potential diversion of approximately Rs 20 billion ($241 million) from the company. This figure is roughly ten times larger than SEBI's initial estimates, raising concerns about financial irregularities within Zee.
However, this is not the final figure, according to Bloomberg sources. The amount could change depending on Zee's response to SEBI's inquiries.
It all started when Chandra and Goenka were accused of misusing their roles as directors or KMPs in a listed company to divert Rs 200 crore for personal gain.
In August 2023, just days after the NCLT (National Company Law Tribunal)’s approval of the Zee-Sony merger, SEBI issued an order preventing Zee promoters Punit Goenka and Subhash Chandra from assuming any significant management roles within Zee companies or the newly merged entity with Sony. The investigation in the matter by SEBI shall be completed in a time-bound manner, within a period of 8 months they said.
“A detailed investigation in the matter is in progress which may bring out additional acts of omission or commission, of the entities(Goenka-Chandra), if any, in detail, depending on the material and after considering the facts and veracity of their submissions. The findings in the extant order are prima facie findings in a matter under investigation,” read an excerpt from the 91 pager order by Madhabi Puri Buch, chairperson, SEBI.
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