ZEEL's committee finds no irregularities against firm during Sebi probe

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

The Independent Investigation Committee (IIC), set up by the board of Zee Entertainment Enterprises Limited, said that “no material irregularities” were found against the company during the 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 Zee’s board on Wednesday, as per the company’s press release.

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 Zee’s chairman emeritus and Essel Group founder, Subash Chandra, and his son, Zee’s managing director and chief executive officer, Punit Goenka, from the company.

“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 an order in August last year, Sebi barred them from holding key positions in four group firms.