Zee founder Subhash Chandra has accused SEBI chief Madhabi Puri Buch of corrupt practices when his media and other companies came under the regulatory scanner. He also said, she and the SEBI were biased against him and his companies. The charges were denied by SEBI.
Chandra said that after SEBI started probing his companies, he was approached by one Manjit Singh who promised that all his issues with SEBI would be settled, and claimed that he was willing to substantiate the allegations.
Last year, SEBI had accused Zee of diverting funds through related party transactions. Subhash Chandra had contested the claims before the Securities Appellate Tribunal (SAT). SEBI had then told SAT that it was conducting a wider investigation in the matter and would pass a final order to that effect.
While alleging irregularities and raising questions over Puri Buch’s income, Chandra sought an investigation into cases that were settled or compounded by SEBI. He said that he would move court to seek her removal from the post. Subhash Chandra blamed Madhabi Puri Buch for the collapse of his company’s proposed merger with Sony Pictures Networks India. The Zee-Sony deal had hit a regulatory roadblock following SEBI’s probe. SEBI had banned Chandra’s son, Punit Goenka, from holding any position in any listed company. Although the ban was overturned, Sony wanted its person to helm the merged entity instead of Punit who was mentioned in the terms of the proposed merger.
Chandra also said that during the proceedings in the Bombay high court, he got access to a SEBI email which the investigating officer had written to his team within a few hours of receiving a detailed response from Zee. He also underlined that he would not cooperate with SEBI in the ongoing probe because of its bias.