Subhash Chandra 'not cooperating' with investigation alleges SEBI
As per reports, SEBI’s legal counsel stated that Chandra is "not cooperating" with the investigations and has repeatedly requested for additional time to submit documents. SEBI had sent summons on January 12. However, Chandra has failed to submit any documents till now.
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Essel Group chairman Subhash Chandra has earlier, filed an appeal related to the alleged fund diversion case. The Securities Appellate Tribunal (SAT) has now asked SEBI to file a reply to the appeal within 10 days, as per a Business Standard report.
Chandra has asked for a stay on the order by SEBI issued on August 14, 2023. The SAT had granted relief to Zee Entertainment Enterprises Limited managing director and chief executive officer Puneet Geonka, Chandra’s son in the same chase.
Business Standard's report also mentioned that SEBI’s legal counsel stated that Chandra is "not cooperating" with the investigations and has repeatedly requested for additional time to submit documents. SEBI had sent summons on January 12. However, Chandra has failed to submit any documents till now.
Chandra’s counsel informed the court that none of SEBI’s allegations had been proved and the case in turn was damaging his reputation. It was also mentioned that SEBI’s order prevented Chandra from holding any position at ZEEL. However, Chandra had resigned from the media conglomerate in 2018 itself.
Market regulator SEBI had earlier summoned several current and former directors of ZEEL as part of its probe into the entertainment company over the alleged diversion of company funds, through related-party transactions.
The regulator has also widened the scope of the investigation. SEBI is also looking into the role of two prominent Mumbai-based production houses as possible “conduits which were used to siphon off funds,” a Moneycontrol report quoted sources.
The regulator is also probing a wider array of transactions between Zee and private companies owned by promoters. “Some of the former directors, including the independent directors, have received communication to appear before Sebi. They have also been asked to provide certain documents pertaining to the period when they were on the board of the company,” the first person said.
In August 2023, SEBI passed an interim order against promoters Subhash Chandra and his son Punit Goenka, barring them from holding any directorships in listed companies, over allegations of funds siphoning.
The proposed Zee-Sony merger, once expected to create a huge media company worth $10 billion, collapsed in January 2024, the possibility of its revival emerged this week after reports of on-going negotiations surfaced. Zee swiftly denied these.
In the same week, SEBI, discovered a significant discrepancy of over $240 million in the accounts of Zee Entertainment Enterprises Ltd, according to reports.
The regulatory body’s investigation into Zee 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.
