In June last year, Sebi said that ₹200 crore from Zee were diverted through related party transactions but this was contested by the company before the Securities Appellate Tribunal (SAT). Sebi later told the tribunal that it was conducting a wider investigation as it found that Subash Chandra had issued a letter of comfort for ₹4,210 crore in his capacity as chairman of Essel Group.

“It was urged that eight months were required to complete a wider investigation, since now, the respondent (Sebi) finds that there are a large number of transactions – running into ₹2,000 crore – involving companies owned, controlled or otherwise related to the promoters,” the order then said.

What is Sebi investigating for now?

“Sebi is examining thousands of pages of transactions, bank statements, agreements, partnership deeds and board minutes”, a person told Economic Times after Bloomberg reported that Sebi had found about $241 million which might have been diverted by the company promoters.

A spokesperson for Zee responded to the report saying, “The reports and rumours pertaining to accounting issues in the company are incorrect and false. Pursuant to the SAT order, which granted relief to the current key managerial personnel (KMP), the company has been in the process of providing all comments, information or explanations requested by Sebi, and has extended complete cooperation on all aspects.”