In a startling turn of events, Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises Ltd (ZEEL), has made serious allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). These accusations come amidst an ongoing SEBI investigation into alleged fund diversion from ZEEL and the recent collapse of a high-profile merger between Zee and Sony. On 2 September 2024, Dr. Chandra held a press conference in Mumbai where he made several explosive claims:
1. Corruption Allegations: Mr Chandra accused Ms Buch of corruption, claiming that her and her husband's combined annual income had mysteriously skyrocketed from around Rs1 crore to Rs40 crore-Rs50 crore since she assumed her position at SEBI. He called for investigations into settled cases, compounded cases and consultation fees paid to Ms Buch and her associates.
2. Alleged Extortion Attempt: Mr Chandra recounted a February 2024 meeting with one Manjit Singh, who allegedly offered to resolve SEBI issues through Ms Buch and her husband for a price. While initially skeptical, recent revelations about Ms Buch's finances have made Mr Chandra reconsider this encounter.
3. ICICI Bank Connection: Mr Chandra alleged a connection between Ms Buch and former ICICI Bank CEO (chief executive officer) Chanda Kochhar. He claimed that Ms Kochhar was giving Ms Buch 'hefty sums of money' and that they made at least 20 calls to each other daily. Mr Chandra suggested that accessing their communications would reveal their modus operandi.
4. Scuttling of Zee-Sony Merger: Perhaps most significantly, Mr Chandra accused SEBI of actively working to derail the US$10bn (billion) Zee-Sony merger. He alleged that despite initial approvals, SEBI instructed stock exchanges to intervene in national company law tribunal (NCLT) proceedings, ultimately leading Sony to terminate the merger.
The Zee-Sony merger would have created a US$10bn media giant. It fell through in in January 2024 due to disagreements over compliance issues, including Zee's failure to dispose of certain Russian assets and its $1.4 billion cricket rights deal with Disney.
One major point of contention was the leadership of the merged entity. While ZEEL managing director and chief executive officer (MD & CEO) Punit Goenka was initially agreed upon to lead the merged company, Sony reportedly sought a reconsideration after Mr Goenka came under SEBI probe.
SEBI has been investigating ZEEL for alleged fund diversion of over Rs2,000 crore.
In August 2023, SEBI had barred Mr Chandra and Mr Goenka from holding key positions in four group firms. Earlier, in June 2023, SEBI had alleged fraudulent practices and fund diversion by promoters from Shirpur Gold Refinery, an Essel group firm. The controversy has had a significant impact on ZEEL's shareholding pattern. As of June 2024, promoters hold just 3.99% stake in Zee Entertainment Enterprises, while foreign institutional investors (FIIs) hold 18.91%, domestic institutional investors (DIIs) hold 22.51%, and public shareholding stands at 54.59%.
The controversy surrounding SEBI chairperson Madhabi Puri Buch intensified earlier on Monday when the Congress Party levelled serious allegations against her. The Party claimed that Ms Buch had continued to receive salary and Employee Stock Ownership Plan (ESOP) benefits from ICICI Bank during her tenure at SEBI. These allegations suggested a potential conflict of interest and raised questions about the integrity of the regulatory body. However, ICICI Bank in a communication to stock exchanges, clarified that neither it nor its group companies had paid any salary or granted ESOPs to Ms Buch after her retirement, except for her retirement benefits. ICICI Bank explained that the payments made to Buch post-retirement had accrued during her employment phase with the ICICI group and comprised ESOPs and retirement benefits, in line with applicable policies and tax regulations. On August 10th, Hindenburg, a US-based short-seller alleged connections between the Adani group and the SEBI chairperson.
ZEE Conglomorate over last few decades created ???? 's of Subsidiaries with Cross holdings and money transfers which has LOOTED SHAREHOLDERS money for their own FAMILY benefits!
Infact Subhadh & Puneet should be removed from ALLL BOARDS by Shareholders to realize their investments