In a significant development, reports suggest that the Enforcement Directorate (ED) has initiated search operations at the Mumbai office of Essel Group, a conglomerate that includes Zee Media Corporation. The ongoing search, launched this afternoon, involved questioning the company’s officials by the central probe agency.
Essel Group’s offices, housed in the Continental building premises, include key entities such as Zee Media Corp, Zee Learn, Mount Litera Edu Foundation, Essel Homes, and Essel Infra & Housing.
This development follows recent revelations from the Securities and Exchange Board of India (Sebi) regarding its probe into Zee. Earlier estimates of funds siphoned off stood at Rs 200 crore; however, recent reports suggest a substantial increase to Rs 800-Rs 1,000 crore. Sebi’s investigation is focused on key figures within the organization, including ZEE MD & CEO Punit Goenka.
In August of the previous year, Sebi had imposed restrictions on Punit Goenka and Subhash Chandra, barring them from boardrooms of Zee group companies. The allegations then were centered around the misappropriation of Rs 200 crore for personal gain. The current investigation, however, suggests a deeper involvement of Punit Goenka in the misuse of funds within Essel entities.
Sebi may consider upholding its previous order restraining Goenka from holding positions as a director, pending further investigation into the financial irregularities. The timing of these developments couldn’t be more unfavorable for Zee shareholders, who are already grappling with a 30% dip in the stock value on Tuesday due to the termination of the $10-billion merger deal with Japan’s Sony on Monday.
