Zee sets up panel to probe regulator’s allegations against company, promoters
NEW DELHI : The board of directors of Zee Entertainment Enterprises Ltd (ZEEL) has expanded and strengthened the role of the independent advisory committee set up last week to review and examine all allegations raised by the regulatory agencies against the company, its promoters and key managerial personnel through a deep-dive exercise.
The committee will take necessary measures to investigate the allegations, with the sole interest to protect the rights of the company’s shareholders and other stakeholders, ZEEL said in a statement on Tuesday. “…After completing the abovementioned exercise, the committee will submit its report to the Board with its recommendations and suggest actions required to be undertaken by the Board. The Committee can also appoint or hire any other independent outside agency to assist it to fulfil its charter,” the statement added.
The panel will be chaired by Justice Satish Chandra and comprise ZEEL’s independent directors, Uttam Prakash Agarwal and P.V.R Murthy. It will review all company records and information to prepare and present a detailed report to the Board, advising a future course of action, the statement added.
R. Gopalan, chairman ZEEL, said it is pertinent for the board to take concerted action to get to the truth of the matter in the light of the allegations made against the company. “The Independent Investigation Committee chaired by Justice Satish Chandra, will further guide and empower us to take necessary actions in a timely manner,” he said in a statement.
Over the past few weeks, according to media reports, the Securities and Exchange Board of India (Sebi) has uncovered a financial discrepancy exceeding $240 million, or around ₹2,000 crore, in the accounts of Zee Entertainment Enterprises. This amount is nearly 10 times the amount Sebi investigators had initially estimated.
The development came shortly after the collapse of ZEEL’s proposed merger with Sony group’s India unit.
Further, ZEEL had to issue a clarification denying reports of restarting discussions with Sony group to revive their $10-billion merger that was terminated on 22 January.
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Published: 27 Feb 2024, 11:14 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.