The Zee Leisure Enterprises inventory is buying and selling 1.85% up right now at ₹190.1, up from ₹186.65 on the Nationwide Inventory Change. For the reason that SEBI order previously week, the inventory has tumbled 1.88%.

After confirming siphoning off of funds value ₹200 crore for their very own profit, the SEBI on June 12 banned Chandra and Goenka from holding the place of a director or key managerial personnel in any listed firm or its subsidiaries.

The case pertains to SEBI’s probe after the resignation of two unbiased administrators (Sunil Kumar and Neharika Vohra) of Zee in November 2019 after elevating issues over a number of points, together with the appropriation of sure fastened deposit (FD) of ZEEL by Sure Financial institution Ltd (Sure Financial institution) for squaring off loans of associated entities of Essel Group.

The probe revealed Chandra, the then chairman of ZEEL/Essel Group, supplied a ‘letter of consolation’ on September 4, 2018, in direction of credit score services availed by sure group corporations from Sure Financial institution. Neharika Vohra’s resignation letter to then ZEEL chairman confirmed this LoC was recognized solely to a couple individuals in administration and even the board of ZEEL was not conscious of the identical, SEBI mentioned.

On the energy of the LoC, Sure Financial institution adjusted a hard and fast deposit of ₹200 crore of ZEEL for assembly the obligations of seven entities, together with Pan India Infraprojects, Essel Inexperienced Mobility, Essel Company Assets, Essel Utilities Distribution Firm, Essel Enterprise Excellence Providers, Pan India Community Infravest, and Dwelling Leisure Enterprises.

These affiliate entities have been owned or managed by relations of Chandra and Goenka, the promoter household that can also be the useful proprietor of promoters of ZEEL, discovered SEBI.

SEBI mentioned Chandra and Goenka have been the “direct beneficiaries” of the alleged fund diversion for the reason that affiliate entities that benefitted from the “liquidation of FD of ZEEL by Sure Financial institution have been owned or managed by the promoter household”, the order mentioned, including that each abused their place by siphoning off funds for their very own profit.

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