Reports: Ministry of Corporate Affairs to probe SEBI's allegations against Zee
SEBI's interim order alleged Zee Entertainment Enterprises of bogus book entries and siphoning of funds
Taking cognisance of the Security and Exchange Board of India's (SEBI) interim order against Zee Entertainment Enterprises, the Ministry of Corporate Affairs (MCA) is examining irregularities in the media house, sources reported.
SEBI's interim order alleged Zee Entertainment Enterprises of bogus book entries and siphoning of funds.
It is probing lapses in corporate governance issue, the ET report added citing sources.
Other than the report, there has been no official inspection order issued by the MCA on the investigation.
So far, there has been no information given to Zee on MCA probe.
The company has not even received any notice regarding the investigation, found Reuters from a source aware of the matter.
Soon after the report was published, Zee media shares fell as much as 3.9% on the share market on Friday. There has been no official statement issued by both MCA nad Zee in the matter.
By the end of the stock market trading on Friday, the company shares closed 0.04% higher at ₹234.00 apiece on BSE.
SEBI on June 12 had imposed a ban on Zee's Chairman Subhash Chandra and CEO Punit Goenka from holding any board positions in listed companies for a year.
The market regulator had alleged the two of actively involving in the diversion of funds to the group's other listed entities and related firms related to founding shareholders.
The company last month said it formed an inernal committee to run its operations after Chandra and Goenka failed to overturn market regulator's ban on them holding board positions.
On Wednesday, the National Company Law Appellate Tribunal (NCLAT) on Wednesday deferred the hearing of IDBI Bank's plea against Zee Entertainment till August 17.
IDBI Bank has challenged an NCLT order, which had on May 19 rejected its plea to initiate insolvency proceedings against Zee Entertainment.
When the matter came for hearing, lawyers asked for adjournment of hearing. After the request, the NCLT bench consisting of Chairperson Justice Ashok Bhushan and Member Barun Mitra deferred the matter to August 17.
