An Independent Investigation Committee (IIC) constituted by the Board of Directors of ZEE Entertainment Enterprises Ltd (ZEE), has found no irregularities in the functioning of the company.
“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 the order released on August 14 2023, SEBI confirmed that Goenka along with his father Subhash Chandra will not be allowed to hold the position of a Director or a KMP in ZEEL or any of its subsidiaries, while the market regulator completes its investigation on the matter. The order by the capital markets regulator came on the back of an investigation into allegations related to the appropriation of certain fixed deposits of Zee by Yes Bank for squaring off loans of related entities of Essel Group
The Committee, chaired by Justice Dr Satish Chandra, former Judge, Hon’ble High Court of Allahabad, comprised ZEE’s two 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, a lawyer, author and an academic practitioner in HR and organisation development.
Based on the verification of the company’s records including the responses submitted to SEBI, the committee noted that the company has provided complete support and has shared detailed responses with 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.
Detailed review
Commenting on the findings, Satish Chandra, said, “We have invested significant amount of time and energy to conduct a detailed review of all the allegations and the necessary submissions have been made to the Board. Basis our report, we have not found anything adverse or untoward in the company’s operations and a detailed report has been submitted to the Board elaborating our findings.”
Post the submission of findings, the Board has advised the company to proactively settle any pending adjudication proceedings with SEBI in a time-bound manner.
On 27th February 2024, the Board of ZEE had instituted the IIC in order to take the necessary measures to delve into allegations levelled by regulatory authorities.