Zee's Subhash Chandra Accuses SEBI Chief of Blocking Sony Merger

Zee group patriarch Subhash Chandra on Monday, made several accusations against SEBI Chairperson Madhabi Puri Buch, stating that he would cease cooperating with the capital markets regulator. SEBI has not yet commented, but a source close to the matter told PTI that the allegations are unfounded.

"All these allegations made by Mr. Chandra are malicious. The facts would suggest otherwise," the source told PTI.

Chandra, the Chairman Emeritus of Zee Entertainment Enterprises Ltd (ZEEL), stated that he is considering legal action against Buch, believing the SEBI Chairperson to be corrupt. He has also urged other corporate entities to support his cause.

In response to a question, Chandra mentioned that his dispute with the SEBI Chairperson also affected the Zee-Sony merger.

"Yes, this was the main reason for the merger to set apart, and that is why I am questioning today that SEBI is supposed to protect the interest of minority shareholders, and she succeeded in pushing away Sony from getting merged with Zee," he alleged.

Chandra also claimed he reached out to Finance Minister Nirmala Sitharaman about the issue but has yet to receive a response. He further alleged that Buch is "biased" against him and has decided "not to cooperate with SEBI any longer."

He also urged ZEEL to "stop cooperating with SEBI any further; since it is a biased investigation being carried out; with a preconceived mindset of the SEBI Chairperson."

"ICICI Bank and my investigation tells me that Madhabi Puri Buch and Chanda Kochhar at that time, were constantly on phone calls," he said, adding: "She was the very close person, and Chanda Kochhar was the one who was giving the money to her, which has been revealed today this morning, for crores of rupees, she was taking illegally from ICICI," Chandra told reporters.

The controversy began last year when SEBI alleged that Chandra and his son used Rs 200 crore in fixed deposits from Zee Entertainment Enterprises Ltd (ZEEL) to repay loans for certain entities. As a result, SEBI barred both Chandra and his son, Punit Goenka, from holding director or key management positions in any listed company until further notice. They challenged this directive before the Securities Appellate Tribunal (SAT), which has since stayed the order.