Subhash Chandra Alleges Corruption and Bias by SEBI Chairperson

Subhash Chandra, the patriarch of the Zee group, has accused SEBI Chairperson Madhabi Puri Buch of corruption and bias. He announced on Monday that he would cease cooperating with the capital markets regulator. SEBI did not immediately comment, but a source close to the matter described the allegations as malicious.

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Allegations Against SEBI Chairperson

Chandra, now Chairman Emeritus of Zee Entertainment Enterprises Ltd (ZEEL), is considering legal action against Buch. He believes she is corrupt and has called on other corporate houses to join his fight. He also urged ZEEL to stop cooperating with SEBI, claiming the investigation is biased and pre-conceived.

Chandra alleged that Buch and former ICICI Bank CEO Chanda Kochhar were frequently in contact. He claimed Kochhar was giving money to Buch illegally from ICICI Bank, amounting to crores of rupees. "ICICI Bank and my investigation tell me that Madhabi Puri Buch and Chanda Kochhar at that time, were constantly on phone calls," he said.

Impact on Zee-Sony Merger

Chandra stated that his issues with the SEBI Chairperson affected the Zee-Sony merger. He alleged that Buch's actions pushed Sony away from merging with Zee, which was supposed to protect minority shareholders' interests. "Yes, this was the main reason for the merger to set apart," Chandra said.

The controversy began when SEBI accused Chandra and his son Punit Goenka of siphoning funds last year. They allegedly used fixed deposits worth Rs 200 crore from ZEEL to repay loans of certain entities. As a result, SEBI barred both from holding director or key management positions in any listed firm until further orders.

Legal Challenges and Responses

Both Chandra and Goenka challenged SEBI's directive before the Securities Appellate Tribunal (SAT), which stayed the order. Despite this, Chandra remains vocal about his grievances against SEBI and its Chairperson. He also mentioned writing to Finance Minister Nirmala Sitharaman about the issue but has not received a response.

Chandra's allegations have stirred significant controversy within the corporate sector. The source familiar with SEBI's stance reiterated that "all these allegations made by Mr Chandra are malicious. The facts would suggest otherwise."

The unfolding events highlight ongoing tensions between corporate leaders and regulatory bodies in India. The outcome of this dispute could have broader implications for corporate governance and regulatory practices in the country.

This situation continues to develop as both sides present their arguments and evidence. The business community is closely watching how this conflict will resolve and what precedents it might set for future interactions between corporations and regulators in India.