ED Searches Essel Group Amid Sebi's Zee Fund Probe

The Enforcement Directorate (ED) has conducted search operations at the Mumbai office of Essel Group, the parent company of Zee Media Corporation,  as reported by ET Now, citing sources. The central probe agency is questioning company officials, and various Essel Group offices, including those of Zee Media Corp, Zee Learn, Mount Litera Edu Foundation, Essel Homes, and Essel Infra & Housing, are situated in the Continental building premises. Recent reports suggest that SEBI's investigation into Zee indicates a potential siphoning of Rs 800-Rs 1,000 crore, a significant increase from the initially reported figure of Rs 200 crore.

In August of the previous year, SEBI had barred Zee's Punit Goenka and Subhash Chandra from the boardrooms of four Zee group companies, alleging fund misappropriation of Rs 200 crore for personal benefit. However, this amount has now risen substantially. The focus is reportedly on ZEE MD & CEO Punit Goenka's role in the misuse of funds as Key Managerial Personnel in Essel entities. The report suggests that Sebi might uphold its order restraining Goenka from holding a directorial position. This development comes amid Zee's stock facing a 30% decline on Tuesday (23rd January, 2024) following the termination of the $10-billion merger deal with Japan's Sony on Monday, 22nd January, 2024.