Zee Entertainment Enterprises Ltd (ZEEL) led by veteran entrepreneur Subhash Chandra Goel has denied all the allegations made by left-leaning media house ‘The Wire’. Along with the denial, ZEEL has also filed a lawsuit against the concerned portal. The Wire in an article has alleged that some companies associated with ZEEL made transactions with Nityank Infrapower and Multiventures Ltd which is being probed by the Serious Fraud Investigation Office (SFIO). The premier corporate fraud investigation agency is probing Nityank Infrapower for allegedly depositing 3,000 crores after demonetization. The share of ZEEL plunged over 20 percent wiping out value worth 14,000 crore rupees on Friday, January 25 after the article was published on the portal on January 24.
“We wish to reiterate and confirm that Zee Entertainment Enterprises Ltd has no connection whatsoever with any alleged transactions contained in the article published by a website. Essel Group had already confirmed that Nityank lnfrapower and Multiventures Ltd is an independent company and does not belong to Essel Group,” said ZEEL in a letter to the National Stock Exchange where the company is listed. The Subhash Chandra led company clarified that documents sought by SFIO from certain companies of Essel group in investigation against Nityank was provided back in July and the case stood closed on the part of Zee media. “Media reports alleging involvement of Essel Group entities in the SFIO investigation against Nityank are being done only with malicious intent and legal action, as advised or appropriate are being initiated in this regard,” said the letter by ZEEL to NSE.
Moreover, the shares of Zee Entertainment gained 14.29 percent in early hours of trading today. The company assured the lenders about its dealings and attributed the decline of share to ‘negative forces’. Chandra assured the investors that all the companies under Zee Entertainment were “performing exceptionally well and are under no stress whatsoever.” “I am pleased to share that we have achieved an understanding with lenders,” he added. “We have always valued their immense trust and faith sown in us and the positive and progressive outcome of the meeting is a true example of the same. I am very positive that we will continue to take such positive steps in rising up from the current challenging times with support of all stakeholders,” he added.
Zee Entertainment is exposed to Non-Banking Financial Companies (NBFCs) including mutual funds markets. The MFs industry has a total exposure of 7,500 crore rupees against the Zee group. These investors were worried after the allegations of dealing with a company being investigated were made by ‘The Wire’. However, the investors calmed down after the promoters of Zee media ensured that default would not be declared due to a steep decline in share prices.
The Wire has done many hit jobs against prominent conglomerates who do not share the same ideology as that of the portal. The left-leaning media company has made false allegations against BJP President Amit Shah’s son Jay Shah, current finance minister Piyush Goyal, and now it has targeted a prominent media house. The Wire targets every individual and corporate house on the right side of the political spectrum with a motive to defame and weaken them.