MCA seeks details from SEBI on ZEEL account investigations
According to reports, a preliminary MCA investigation suggests alleged involvement of Yes Bank in misusing ZEEL's fixed deposits.
Ministry of Corporate Affairs (MCA) has reportedly reached out to Securities and Exchange Board of India (SEBI) seeking details about its recent investigation that has allegedly unearthed discrepancies worth $240 million in Zee Entertainment Enterprises’ accounts.
According to reports, a preliminary MCA investigation suggests alleged involvement of Yes Bank in misusing ZEEL's fixed deposits (FDs). The report claims these FDs were used to settle loans for entities linked to ZEEL. MCA could also soon summon ZEEL CEO Punit Goenka as as a part of the investigation process.
Earlier this week, Bloomberg reported that SEBI uncovered a discrepancy in Zee Entertainment Enterprises' accounts, 10 times larger than their initial estimates.
However, Zee denied all claims made by the media reports.
"The reports and rumours pertaining to accounting issues in the Company are incorrect and false. Pursuant to the SAT(Securities Appellate Tribunal) order, which granted relief to the current Key Managerial Personnel (KMP), the Company has been in the process of providing all the comments, information or explanation requested by SEBI, and has extended complete co-operation on all aspects, said the company spokesperson.
Soon after, the board of directors at ZEEL has approved the formation of an independent advisory committee.
The committee, led by Dr Satish Chandra, a former Judge of the High Court of Allahabad, will comprise of two independent directors of the company, Uttam Prakash Agarwal and P V R Murthy.
This independent body will be tasked with reviewing and addressing the widespread circulation of misinformation, market rumours, and speculation that has negatively impacted the company's public image and investor confidence.
