In five charts: How ZEEL’s funds were routed back to itself, according to Sebi 

The Sebi investigators estimated that atleast Rs.143.90 Crore had been transferred from ZEEL/other listed companies of Essel Group through such routing of funds

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26 Aug, 2025 12:21

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On June 12, the market regulator barred Essel Group Chairman Subhash Chandra and Zee Entertainment Enterprises (ZEEL) CEO Punit Goenka from holding any directorial or key managerial position in listed companies or their subsidiaries.

Chandra and Goenka have approached the Securities Appellate Tribunal (SAT) with an appeal against the order.

The Securities and Exchange Board of India (Sebi) passed the interim order after its investigations showed that Chandra and Goenka had diverted money from the listed entity by layering of transactions, which sometimes even involved the money passing through 13 entities in two days.

Also read: ZEEL: SEBI bars promoters; what should investors do?

Investigation into the company’s affairs started in 2019 when two independent directors resigned after it was revealed that Chandra had given— without informing the company’s Board — a Letter of Comfort (LoC) that made ZEEL’s Rs 200 crore fixed deposit available to settle loans of the group’s unlisted, associate entities.

ZEEL later claimed that the money had been paid back by the associate entities that year in September/October, but further investigation by Sebi showed that ZEEL’s money had been routed through a complex web of companies and then back to itself. That is, ZEEL’s money had been used to pay itself back.

In some instances, money of other listed entities of the group — Zee Media Corporation and Dish TV India — was used to repay debts of the unlisted, private entities.

The investigators estimated that at least Rs 143.90 crore had been transferred from ZEEL/other listed companies of Essel Group through such routing of funds, “to falsely portray repayment of due amounts to ZEEL from Associate Entities”.

Here are five charts that show how this routing was done.

ZEEL claimed to have received Rs 17.10 crore from Essel Green Mobility (EGML) on September 27,019.

But the following flowchart (as given in the Sebi order) shows that the payment ZEEL received on that date had originated in the bank account of ZEEL on September 26, 2019.

Source: Sebi order

ZEEL claimed to have received Rs 17.40 crore from Living Entertainment Enterprises (LEEPL) and Rs 49.30 crore from Pan India Network Infravest Ltd (PINIL) on October 1, 2019.

But the chart below shows how the money ZEEL was supposed to have received from LEEPL and PINIL had originated from Zee Studios, a wholly-owned subsidiary of ZEEL, on September 30, 2019.

On October 10, 2019, ZEEL was said to have received Rs 23 crore from Essel Business Excellence Services (EBESPL).

But, the chart below shows that the money for this had originated from ZEEL on October 7, 2019.

ZEEL claimed to have received Rs 14.80 crore from Pan India Infraprojects (PIIPL) on September 26, 2019.

The below chart shows how this money had originated from the bank account of Zee Akaash News, a wholly-owned subsidiary of Zee Media Corporation, a listed company of the Essel Group.

ZEEL had said that it had received Rs 22.30 crore from Essel Corporate Resources (ECRPL) on September 30, 2019. But the flowchart below shows how the money had come from Dish Infra Services (DISPL) a wholly-owned subsidiary of Dish TV India, a listed company under the Essel group.

“The above flow of funds clearly indicates that there was no actual net receipt of funds by ZEEL and these were merely book entries to show receipt of funds,” stated the Sebi order.

Also read: Zee shares recover, but speculation continues over company's merger with Sony

“The funds diverted from ZEEL/other listed companies had ultimately benefitted the Promoter Family, as the Associate Entities which were the beneficiaries of appropriation of ZEEL’s FD of Rs.200 Crore by Yes Bank for settlement of their liabilities are owned/controlled by the Promoter Family of ZEEL,” stated the order.

It added that the fund trail of the balance amount — Rs 200 crore minus Rs 143 crore that has been routed thus — is still under examination. The order added, “the possibility that the same (the balance amount) has also been siphoned off from ZEEL/other listed companies of Essel Group cannot be ruled out”.