Investigation committee gives clean chit to ZEE, submits report to the board

The Independent Investigation Committee (IIC), constituted by the Board of Directors of ZEE Entertainment Enterprises Ltd. (ZEE), has cleared the company of allegations raised by market regulator SEBI regarding the alleged siphoning of funds amounting to Rs 2,000 crore. The IIC report was submitted to the company’s Board on Wednesday.

ZEE formed the IIC on February 27, chaired by Justice Dr. Satish Chandra, a former judge of the Honorable High Court of Allahabad. The committee also included ZEE’s two Independent Directors: Mr. Uttam Prakash Agarwal, Chairman of the Audit Committee and former President of the Institute of Chartered Accountants of India, and Dr. P.V. Ramana Murthy, Chairman of the Nomination and Remuneration Committee, a lawyer, author, and academic expert in HR and organizational development with over 30 years of experience across renowned global brands.

Dr. Satish Chandra, Chairman of ZEE’s Independent Investigation Committee and Former Judge of the Allahabad High Court, stated, “We have invested a significant amount of time and energy to conduct a detailed review of all the allegations, and the necessary submissions have been made to the Board. The required records and information were obtained from the Company, its management, and promoters over the last few months, which were duly verified by the Committee, along with a team of experts from the financial domain.”

Chandra further added, “The efforts of Committee members, Dr. Murthy and Mr. Agarwal, along with the external advisors, allowed us to conduct a comprehensive evaluation of all the points. The Committee acknowledges the support provided by the management, which enabled us to complete the review in a timely manner. Based on our report, we have not found anything adverse or improper in the Company’s operations, and a detailed report has been submitted to the Board outlining our findings.”

The committee stated in its report that it reviewed the allegations raised by the regulatory agencies and verified all the documents and information provided by ZEE during the investigations conducted by SEBI. The committee also sought advice from reputable external audit firms (empaneled with regulatory agencies), as well as taxation and regulatory experts, to ensure a comprehensive review of all points.

The committee’s report indicates that ZEE has implemented necessary remedial measures for past issues already reviewed by SEBI. The Committee also noted that the transactions under investigation did not adversely impact the Company or its shareholders. These transactions were found to be part of the normal course of business, and no material irregularities were identified.

The Committee found no need for further corrective or disciplinary measures, policy changes, or legal steps.

Following the submission of its findings, the Board has advised the Company to proactively settle any pending adjudication proceedings with SEBI in a timely manner, in the interest of shareholders and all stakeholders of the Company.