Zee's Subhash Chandra accuses SEBI chief Madhabi Puri Buch of bias and corruption

Essel Group chairman Subhash Chandra made multiple allegations against Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and announced that he would cease cooperating with the capital markets regulator. As per media reports, sources familiar with the situation described the allegations as malicious.

Subhash Chandra, now chairman emeritus of Zee Entertainment Enterprises (ZEEL), stated that he is considering legal action against Madhabi Puri Buch, as he believes she is corrupt. Chandra has also urged other corporate houses to join him in his fight.

When asked about the impact of his dispute with the SEBI chairperson on the Zee-Sony merger, Chandra confirmed that it was the primary reason the merger fell apart. "Yes, this was the main reason for the merger to set apart, and that is why I am questioning today that SEBI is supposed to protect the interest of minority shareholders, and she succeeded in pushing away Sony from getting merged with Zee," he alleged.

He further alleged that Buch is biased against him and declared that he has decided not to cooperate with SEBI any further. He also urged ZEEL to stop cooperating with SEBI any further, as it is a biased investigation being carried out with a pre-conceived mindset by the SEBI chairperson.

Last year, SEBI accused Subhash Chandra and his son Punit Goenka of siphoning off funds by using Rs 200 crore in fixed deposits (FDs) from Zee Entertainment Enterprises (ZEEL) to repay loans of certain entities. As a result, SEBI barred Chandra and Goenka from holding any position as director or key management personnel in any listed firm until further notice.

Both Chandra and Punit Goenka challenged the SEBI directive before the Securities Appellate Tribunal (SAT), which stayed the order.