Tree House closures a fit case for class action:Ex-SEBI official

Following Tree House playgroup downing the shutters on 113 branches across India, the company has come under a spotlight. It has claimed that it hasn't been able to pay staff salaries leading to the shutting of branches. In August, Tree House and Zee Learn revised the terms of their merger. Both companies were in talks for a deal as early as December 2015. Speaking to CNBC-TV18 JN Gupta, Former ED, SEBI, said that there is a governance issue at the playgroup. “Someone had to question. It is a fit case for a class action suit, a SEBI probe and action by Ministry of Corporate Affairs.”

The Zee Learn shareholders should review the merger and see whether it is worthwhile or not, he said.Watch video for more...