Sebi has reportedly found discrepancy of more than $240 million in the accounts of Zee Entertainment Enterprises, in another blow to the embattled media firm less than a month after its merger with Sony Group Corp’s local unit collapsed.
As part of its investigation into the Zee founders, regulator found that about $241 million may have been diverted from the company, a Bloomberg report said, adding that the amount is roughly ten times more than initially estimated by Sebi investigators.
The amount found missing is not final and may change after Sebi reviews the responses from the company executives, the report added. The regulator has been calling in senior officials at Zee including founders, Subhash Chandra, his son Punit Goenka and some board members to explain their stance, they added.
"The reports and rumours pertaining to accounting issues in the company are incorrect and false. Pursuant to the SAT 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.” a Zee spokesperson said.
Sebi’s latest findings add to Goenka’s woes, as the Zee CEO tries to reassure investors after its $10 billion merger plan with Sony fell apart. The transaction, two years in the making, was terminated in January after a months-long stalemate on who’ll lead the new entity.
Zee panned reports of it re-engaging with Sony to assess if the merger can be revived.
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.