Zee Leisure Enterprises Ltd (ZEEL) on Saturday stated that the stories claiming potential company governance lapses within the firm and probes by increased authorities are incorrect and false. On Friday, it was reported that the Ministry of Company Affairs (MCA) had sought particulars from the Securities and Change Board of India (Sebi) on its newest findings of ‘fund diversion’ at Zee Leisure Enterprises.
The ministry’s preliminary probe had discovered appropriation of ZEEL’s mounted deposits (FDs) by Sure Financial institution, for buying and selling off loans of associated entities of Essel Group.
In a press release issued on Saturday, the corporate stated: “The stories pertaining to potential company governance lapses within the firm and subsequent probes by related departments, are incorrect and false. The stories additionally point out vested pursuits of a 3rd social gathering. ZEE has maintained utmost requirements of governance; and is an organization that’s guided by an skilled Board. The corporate has persistently prolonged full co-operation to all involved authorities and has transparently offered all info requested.”
It addee: “The corporate and its Board are taking all of the required measures to guard the curiosity of its shareholders. The not too long ago shaped Impartial Advisory Committee, comprising of two Impartial Administrators, presided by Dr. Satish Chandra, Former Decide of the Allahabad Excessive Courtroom; is a step taken to evaluate such widespread circulation of misinformation, market rumours and hypothesis. The Firm has additionally requested SEBI to take cognizance of such market rumours that result in misinformation and consequently erosion of investor wealth.”
Zee Leisure Enterprises on Friday constituted an impartial advisory committee headed by Satish Chandra, retired choose of Allahabad Excessive Courtroom, to curb erosion of its investor wealth within the wake of speculations, resulting in detrimental public opinion of the corporate.
“The board of ZEE Leisure Enterprises Ltd (ZEEL), has accepted to represent an impartial advisory committee that may allow it to evaluate and take cognizance of the widespread circulation of misinformation, market rumours, and hypothesis that has led to the formation of detrimental public opinion concerning the firm and consequent erosion of investor wealth,” ZEEL stated in a press release.
In June, the Securities and Change Board of India (Sebi) charged Goenka and Zee Group Chairman Subhash Chandra with misappropriating firm funds. Nonetheless, Goenka’s ban on holding board posts in Zee Group entities was lifted by the Securities Appellate Tribunal (SAT) in October.
As per information stories, each the MCA and Sebi have been investigating the group over allegations levelled by impartial administrators since 2019. The MCA is investigating claims of Corporations Act, 2013 violations, whereas Sebi is trying into capital market breaches. They found that Sure Financial institution used Rs 200 crore from FDs to repay loans of Essel Group’s associated events.
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