MCA probes alleged irregularities in Zee Enterprises as SEBI's interim order raises concerns

The Ministry of Corporate Affairs (MCA) is currently examining the alleged irregularities in Zee Entertainment Enterprises as reported by the market regulator, SEBI, according to ET Now's  report. Regulatory body Security Exchange Boards of India (SEBI)'s interim order had highlighted concerns of bogus book entries and fund siphoning, leading the MCA to probe potential lapses in corporate governance.

However, Zee Entertainment Enterprises stated that they are not aware of any ongoing MCA probe and have not received any notification from the ministry, as reported by Reuters, citing an inside source. The MCA has acknowledged SEBI's interim order but has not issued an inspection order as of now.

In response to SEBI's order, which barred Subhash Chandra and ZEEL MD Punit Goenka from holding directorial or key managerial positions in any listed company due to alleged fund siphoning, both Chandra and Goenka moved the Securities Appellate Tribunal (SAT) seeking a stay on the order, citing injustice.

In a letter to the company's employees, Punit Goenka reportedly stated that the merger of ZEE Entertainment and Sony has progressed significantly and should not be affected by the issues faced with SEBI. Goenka assured the employees that the ZEEL board has formed an interim committee of senior executives to ensure smooth operations and day-to-day functioning.

Furthermore, Goenka reiterated that the merger with Sony has already received clearance from the Competition Commission of India (CCI), Bombay Stock Exchange (BSE), and National Stock Exchange (NSE), as well as the company's shareholders. He emphasized that the merger with Sony remains a top priority and is in the best interest of all stakeholders.