Zee Entertainment Enterprises Limited (ZEEL) has clarified through a notice on the Bombay Stock Exchange (BSE) that it has no connection with any alleged transaction(s) as reported in the media. Last week, a report in The Wire suggested a link between Essel Group, the promoter o ZEEL, and Nityank Infrapower, a firm being investigated for suspicious deposits after demonetisation (November 2016).
The company added that the Essel Group has also filed a legal case against the media platform, “which has maliciously attempted to establish a linkage between the SFIO’s investigation and ZEE Entertainment Enterprises Ltd’s promoters."
“All the queries relating to demonetisation, if any, from SFIO (Serious Fraud Investigation Office) were directed to Nityank and that all the information/documents relating to certain transactions sought by SFIO, were provided. As the letter reads, since all information sought by SFIO has been provided by Essel Group entities and no further information has been subsequently sought, the matter stands closed for Essel Group entities,” ZEEL’s communication to the exchange added.
On Friday, the stocks of Essel Group-promoted companies – ZEEL, and Dish TV found themselves in the freefall after the news report was published.
In response to the development, Essel Group Founder and Chairman Subhash Chandra sent out an open letter wherein he accepted being in debt due to the failure of multiple infrastructure projects, and the failure of his new businesses to take off. He added that he intended to pay the debt through the sale of promoter stake in ZEEL, but was being targeted by ‘negative forces’ that did not wish to see him succeed.