Big blow to Zee Entertainment, SEBI investigation reveals fund diversion of ₹2000 crore: Bloomberg report

There is no sign of solving the problem for Zee Entertainment Enterprises (ZEEL). Now market regulator SEBI has revealed fund diversion of about 240 million dollars (about ₹ 2000 crore) in this company. This information is coming out quoting news agency Bloomberg. Recently, the merger deal of this company with the Indian business of Sony Group has been cancelled.

During the investigation of Zee Founders, SEBI has found that funds worth about ₹ 200 crore have been diverted from this company. This amount is almost 10 times what was estimated before the SEBI investigation began. However, at present no official information has been revealed by SEBI in this regard.

SEBI summoned senior officials

However, it has been said in this report that the figure of fund diversion of ₹ 2000 crore can change after the review of SEBI and the response of the company. After finding this irregularity, SEBI has summoned senior officials of Kanpi. This also includes founder Subhash Chandra, his son Punit Goenka and other board members.

Bloomberg has said in the report that Zee spokesperson has not given any answer on the fund diversion but has definitely told that the company is promptly assisting the market regulator in the ongoing investigation.

Challenges will increase for Zee

Zee CEO Punit Goenka’s troubles may increase after SEBI investigation revealed such huge fund diversion. After the cancellation of the deal worth around $10 billion with Sony, it may now be challenging for them to gain the trust of investors. On January 22 itself, after two years of negotiations, Sony India has decided to cancel the deal. After the merger of the two companies, differences regarding leadership in the new entity were said to be the biggest reason for this.

It was believed that the merger of the two companies would improve Zee’s financial position. Zee’s profit in the December quarter was only ₹58.5 crore, which was below analyst estimates. However, a day ago some media reports claimed that once again talks are starting between the two companies regarding merger. But, Zee has also issued a clarification on this.