SEBI Detects Discrepancy Of $240 Million In Zee's Accounts; Stock Slips 11 Per Cent

SEBI has intensified its scrutiny, summoning senior officials, including founders Subhash Chandra and Punit Goenka, along with certain board members to elucidate their positions, as per report

Zee shares were trading at Rs 171.95 apiece, down 10.91 per cent on the BSE on Wednesday.

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The Securities and Exchange Board (SEBI) has unearthed a financial discrepancy exceeding $240 million within the accounts of Zee Entertainment Enterprises Ltd. This revelation deals another blow to the embattled media giant, coming less than a month after the collapse of its merger with Sony Group Corp's local unit. According to Bloomberg, sources familiar with the investigation revealed that SEBI's probe into Zee's founders uncovered potential diversions of around Rs 20 billion from the company's funds. This figure, significantly higher than initial estimates, reflects a concerning tenfold increase as per SEBI investigators.

Zee shares were trading at Rs 171.95 apiece, down 10.91 per cent on the BSE on Wednesday.

While the precise amount remains subject to review pending responses from Zee executives, SEBI has intensified its scrutiny, summoning senior officials, including founders Subhash Chandra and Punit Goenka, along with certain board members to elucidate their positions.

Responding to inquiries, a SEBI representative refrained from immediate comment, while a Zee spokesperson, though declining to address the specific fund diversion, affirmed the company's cooperation with ongoing regulatory inquiries.

This latest revelation compounds challenges for Goenka, Zee's CEO, already grappling with investor concerns following the collapse of the proposed $10 billion merger with Sony. Despite ongoing efforts to reassess the merger's viability, significant disparities persist between the two entities, with reported hurdles hindering progress.

The regulatory scrutiny, primarily centred on alleged financial irregularities involving the father-and-son duo, has catalysed a protracted dispute between Sony and Zee since mid-2023. Tensions peaked as Sony expressed reservations about Goenka assuming leadership of the merged entity, citing concerns raised during the merger negotiations. Conversely, Goenka stood firm, asserting his entitlement to the CEO role as per the 2021 merger agreement, thereby precipitating the deal's demise in January.

In a decisive move last August, SEBI barred Zee founders Chandra and Goenka from holding executive or directorial positions in any listed company, citing findings of "position abuse" and fund misappropriation for personal gain.