It all started with a letter of comfort (LoC) given by Chandra to Yes Bank for the appropriation of a fixed deposit held by Zee (ZEEL) against a loan of ₹200 crore given to associated entities in 2019.
The seven group entities included Pan India Infraprojects, Essel Green Mobility, Essel Corporate Resources, Essel Utilities Distribution Company, Essel Business Excellence Services, Pan India Network Infravest & Living Entertainment Enterprises.
However, the issuance of the letter led to resignations by independent directors Sunil Kumar and Neharika Vohra. In her resignation letter, Vohra wrote that at the October 17, 2019 meeting, it was brought to light via a letter received by the board from the concerned bank that guarantees were given to a subsidiary without approval from the board. "The operating team treated the issue very casually," wrote Vohra.
The company on its part claims the LoC was given by Chandra in his individual capacity, which would as a result has no financial implication on the group. But the problem wasn't just the LoC but the way the money made its way to the books of Zee's listed entities. While the Sebi investigations have been done for about 70% of the money or ₹143 crore, it believes that the rest of the amount would have been siphoned off in a similar manner.
This story is from the June 14, 2023 edition of Financial Express Mumbai.
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This story is from the June 14, 2023 edition of Financial Express Mumbai.
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