Zee Entertainment Enterprises founder Subhash Chandra has said he will not co-operate with Securities and Exchange Board of India (Sebi) in its ongoing funds siphoning probe.
Chandra who is facing charges of siphoning ₹200 crore from Zee, on Monday, accused SEBI chairperson Madhabi Puri Buch of corruption and bias and blamed her for collapse of Zee-Sony merger. He added he will move court to seek her removal from the post.
“SEBI has not been acting in the interest of investors of ZEE Entertainment. ZEE- Sony merger was progressing well and they had got SEBI and stock exchange approval. Despite the same, SEBI instructed BSE and NSE to intervene in NCLT proceedings and scuttle the merger by spooking Sony. Ultimately the merger was terminated by Sony which resulted in erosion of huge wealth of minority shareholders,” Chandra said.
"I have taken a decision not to co-operate with SEBI any further in my personal capacity. They do not command any respect from me. I urge Zee Entertainment to also stop co-operating with SEBI any further; since it is a biased investigation being carried out; with a pre-conceived mindset of SEBI Chairperson," Chandra said.
Zee-Sony merger
In December 2021, Zee and Sony agreed to merge but the deal hit regulatory roadblock following SEBI investigation. Chandra's son and Zee MD and CEO Punit was also barred by SEBI from holding any post in the company. While the ban was later over turned, Sony kept pushing for his removal derailing the deal.
Chandra said he was making direct accusations against Buch following revelations of her receiving salary from ICICI after taking up SEBI role came to light. The bank has however denied making such salary payments.
“I have nothing to fear because I have not done any wrong,” he said.