Zee's probe clears Goenka and Subhash Chandra of any wrongdoing

An Independent Investigation Committee (IIC) set up by ZEE Entertainment Enterprises Ltd's Board of Directors has determined that there are no irregularities in the company's operations.

“The Committee also noted that the transactions (under investigation) did not adversely affect the Company or its shareholders. The mentioned transactions were found to be a part of normal course of business, and no material irregularities were reported within the same,” said a press release. 

In an order issued on August 14, 2023, SEBI announced that Goenka and his father, Subhash Chandra, are prohibited from holding the positions of Director or Key Management Personnel in ZEEL or its subsidiaries while the market regulator concludes its investigation. This decision follows an inquiry into allegations regarding Yes Bank's appropriation of certain fixed deposits from Zee to settle loans for related entities of the Essel Group.

The Committee, led by Justice Dr. Satish Chandra, a former Judge of the Hon'ble High Court of Allahabad, included two of ZEE's Independent Directors: Uttam Prakash Agarwal, Chairman of the Audit Committee and former President of the Institute of Chartered Accountants of India, and PV Ramana Murthy, Chairman of the Nomination and Remuneration Committee, who is a lawyer, author, and academic expert in HR and organizational development.

After reviewing the company's records and the responses submitted to SEBI, the committee observed that the company has fully cooperated and provided comprehensive information to the regulatory authority.

“Basis its findings during the investigation process, the Committee has also reviewed the matter that is already under adjudication with SEBI, and has stated that no further action is required by the ompany. The Committee did not find any need for further corrective and disciplinary measures, policy changes or legal steps to be implemented,” the press release said.