$240 Million Diversion at Zee Entertainment Enterprises

India’s market regulator has uncovered a preliminary finding suggesting that 20 billion rupees ($240 million) has been diverted from Zee Entertainment Enterprises’ books, prompting questioning of Zee Group founders.

The amount exceeds initial estimates by tenfold, according to sources familiar with the matter. Zee’s shares experienced an 11% decline in Wednesday morning trading, compounding losses following the termination of its $10 billion merger with Sony Group last month.

The Securities and Exchange Board of India (SEBI) had previously stated suspicions of Zee Group founders’ involvement in diverting company funds to other listed entities and related firms, an accusation both Subhash Chandra and Punit Goenka have denied.

In response to the investigation, Zee issued a statement refuting reports of accounting irregularities and affirmed its cooperation with SEBI’s inquiries.

Source: Reuters