On August 1, 2026, the Securities and Exchange Board of India (SEBI) took decisive action against Zee Entertainment Enterprises Ltd (ZEEL) and its top executives, Punit Goenka and Subhash Chandra, for violating securities market regulations. The regulator barred ZEEL from accessing the securities market for two months, while Goenka and Chandra face a 12-month ban. This decision was made after SEBI found that ZEEL had mortgaged its Hyderabad land as collateral for loans taken by Essel Group entities without obtaining necessary corporate approvals. The regulator imposed a total penalty of Rs 1.48 crore on the three entities, with ZEEL facing a penalty of Rs 30 lakh, Goenka facing a penalty of Rs 58 lakh, and Chandra facing a penalty of Rs 60 lakh. The penalties must be paid within 45 days. The case originated from ZEEL’s FY2018-19 statutory audit, which revealed missing title deeds for certain immovable properties. SEBI’s investigation discovered that four Essel Group companies had borrowed Rs 726 crore from Indiabulls Housing Finance Ltd in December 2016, with the borrowing entities ultimately controlled by the accused and their family members. The regulator noted that ZEEL had not obtained prior approval from its audit committee, Board of Directors, or shareholders for the mortgage, and the company later claimed that its management and board were unaware of the transaction.
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📰 Source: Siasat Gulf