Rebellion in the ranks: Zee Entertainment’s shareholders huddle to remove Punit Goenka, chairman Gopalan from board, to seek Sebi intervention
SEBI as part of its ongoing investigation against the key management personnel of ZEEL, namely Punit Goenka, CEO and MD, has questioned some of the erstwhile directors of Zee Entertainment Enterprises Ltd (ZEEL), asking them about the steps they took to protect the minority shareholder rights of the company.
On Monday, Sony Group Corp terminated its proposed $10 billion merger — first announced in December 2021 — between its India operations and Zee to create the largest media giant in the country. Following the development, at least 6 institutional shareholders cumulatively owning over 30 per cent of ZEEL are believed to be planning to approach the board and stock market regulator SEBI in the next week, to call an extraordinary general meeting (EGM) of ZEEL and seek the removal of ZEEL chairman R Gopalan and Punit Goenka, CEO and MD of the company.
Over 350 ZEEL retail shareholders too are planning to join forces and write to SEBI seeking its intervention to protect their shareholder rights.
Sources said, a GST dispute over Rs 850 crore and advances to the tune of Rs 1,400 crore made towards content have also come under regulatory scanner.
Last August, the Sony-Zee deal hit a hurdle after SEBI banned Goenka and his father Subhash Chandra from the board of any listed company for a year, for allegedly diverting funds from Zee and the group’s other listed entities to founding shareholders. The SEBI order was overturned by the Securities Appellate Tribunal (SAT) in October 2023.
SEBI spokesperson said the regulator will not comment on individual cases.
