The Independent Investigation Committee (IIC) set up by the board of Zee Entertainment Enterprises (ZEEL) stated that “no material irregularities” were found against the company during its investigation by the securities regulator, it said in a release on Wednesday.
The IIC, chaired by Justice Dr Satish Chandra, former judge of the High Court of Allahabad, along with two independent directors of the company, Uttam Prakash Agarwal and Dr PV Ramana Murthy, submitted a report to ZEEL’s board on Wednesday, as per the company’s press release.
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This follows an investigation by the Securities and Exchange Board of India (Sebi) into an alleged fund diversion of over Rs 2,000 crore by ZEEL’s chairman emeritus and Essel Group founder, Subash Chandra, and his son, ZEEL’s managing director and chief executive officer, Punit Goenka, from the company. In June 2023, Sebi also alleged fraudulent practices and fund diversion by promoters from Shirpur Gold Refinery, an Essel Group firm.
Subsequently, in an order in August last year, Sebi barred both of them from holding key positions in four group firms.
On February 27, the board of ZEEL instituted the IIC to take necessary measures to investigate allegations levelled by regulatory authorities, with the sole aim of protecting the rights of the company’s shareholders and stakeholders.
“We have invested a significant amount of time and energy to conduct a detailed review of all the allegations, and the necessary submissions have been made to the board,” said Dr Satish Chandra in a statement.
“The committee carried out an extensive fact-checking exercise to verify all the documents and information provided by the company during Sebi’s investigations. The committee also sought the advice of reputed external audit firms (empanelled with regulatory agencies), taxation and regulatory experts, to ensure a comprehensive review of all points,” the IIC added in a statement.
According to the IIC, ZEEL had implemented necessary remedial measures in respect of past issues that were already reviewed by Sebi. The committee also noted that the transactions (under investigation) did not adversely affect the company or its shareholders.
The transactions in question were found to be a part of the normal course of business, and no material irregularities were reported, according to the press release.
The committee also reviewed the matter that is currently under adjudication with Sebi and stated that no further action is required by the company based on its findings.
It did not find any need for additional corrective or disciplinary measures, policy changes, or legal steps to be implemented, according to the company’s release.
Recently, Punit Goenka, addressing employees at a town hall on the company’s 32nd anniversary, said that ZEEL is focusing its efforts on enhancing the company’s performance and profitability across all aspects, in line with its strategic growth plan.
First Published: Oct 09 2024 | 9:36 PM IST
