Sebi to Interrogate Subhash Chandra and Punit Goenka of ZEE on Alleged Fund Diversion

Sebi is set to question top executives at Zee, including founder Subhash Chandra and CMD Punit Goenka, as part of its investigation into allegations of fund diversion within the media company. The probe, which is anticipated to continue until April, will also scrutinize various past and present board members. Following its inquiry, the regulator may explore legal actions based on its conclusions, as stated in a report by the Economic Times.

A June probe by the regulator found diversion to the tune of Rs 200 crore through related party transactions, a charge contested by Zee before the Securities Appellate Tribunal. Following this Sebi launched a wider probe on the firm's financial dealings. 

ZEE shares tumbled 14.8% on the BSE on Wednesday to close at Rs 164.50 apiece, after a Bloomberg report claimed Sebi found that about $241 million (Rs 2,000 crore) might have been diverted by the company promoters. This has added to the steep decline in the ZEE share price after Sony Group scrapped a $10-billion merger plan involving its India business. 

The regulatory probe into the father-and-son duo’s alleged financial improprieties has led to much wrangling between Sony and Zee since mid-2023. It made Sony wary of letting Goenka helm the merged entity while Goenka refused to give in as the CEO spot was promised to him in the 2021 merger pact. The standoff ultimately led to Sony scuttling the deal in January.