File photo of Subhash Chandra
ZEE Entertainment Enterprises (ZEEL) has clarified, through a notice to the BSE, that it has no connection whatsoever with any alleged transaction(s) of Nityank Infrapower, as reported in the media. Last week, a report in The Wire suggested a link between Essel Group, the promoter of ZEEL, and Nityank Infrapower, a firm being investigated for suspicious deposits after demonetisation in November 2016.
The company added the Essel Group has also filed a legal case against the media platform, “which has maliciously attempted to establish a linkage between the Serious Fraud Investigation Office's (SFIO’s) investigation, and ZEEL’s promoters”.
“All queries related to demonetisation, if any, from the SFIO were directed to Nityank, and all the information or documents related to certain transactions sought by SFIO, were provided. As the letter reads, since all the information sought by SFIO has been provided by the Essel Group entities, and no further information has been subsequently sought, the matter stands closed for Essel Group entities,” ZEEL’s communication to the exchange added.
On Friday, the stocks of Essel Group promoted companies
— ZEEL, and Dish TV —found themselves in a freefall after the report was published. In response to the development, Essel Group Founder and Chairman Subhash Chandra sent out an open letter wherein he accepted being in debt due to the failure of multiple infra projects and his new businesses to take off. He said he intended to pay the debt through the sale of promoter stake in ZEEL, but was being targeted by 'negative forces' that did not wish to see him succeed.