Subhash Chandra, the chairman emeritus of Zee Entertainment Enterprises Ltd (ZEEL), has made serious allegations against Madhabi Puri Buch, the chair of the Securities and Exchange Board of India (SEBI), accusing her of sabotaging the proposed Sony-ZEEL merger.

During a press conference held recently, Chandra did not mince words as he labelled Buch as “corrupt” and “vindictive”, blaming Zee’s issues with SEBI as the primary reason behind the collapse of the merger deal.

The controversy between ZEEL and SEBI dates back to June 2023 when SEBI imposed a ban on ZEEL MD-CEO Punit Goenka and Chandra from holding any managerial or directorial positions in listed companies. The suspension was a result of ongoing investigations into alleged insider trading activities, with SEBI mentioning concerns about fund siphoning. However, in November, the Securities and Appellate Tribunal (SAT) overturned SEBI’s order, with Chandra expressing his frustration by stating, “They set aside everything. If you read the order, they are stopped short of saying that there is total prejudice against this group.”

The merger between ZEEL and Sony was called off in January of the following year. Subsequently, a Bloomberg report in February raised questions about a $241 million discrepancy in ZEEL’s accounts, leading to the founders being summoned for interrogation. ZEEL promptly denied these reports, dismissing them as unfounded and inaccurate.

Chandra revealed that he had written to India’s finance minister, Nirmala Sitharaman, raising concerns about Buch’s alleged interference in the Zee-Sony merger, but received no response. In response to the ongoing SEBI investigation, Chandra declared his intention to pursue legal action, citing his refusal to cooperate with what he perceives as a biased and corrupt individual.

These allegations against Buch come amidst previous accusations by the opposition party Congress, claiming that Buch holds a paid position at ICICI Bank and has received substantial benefits from the bank and its subsidiaries.

Chandra’s strong statement following the press conference expressed his disappointment with SEBI’s handling of the ZEE Entertainment case, accusing the regulatory body of acting against the best interests of the company’s investors and causing significant financial losses due to the failed merger.

In light of these developments, Chandra announced his decision not to cooperate further with SEBI on a personal level and urged Zee Entertainment to follow suit, denouncing the ongoing investigation as biased and predetermined by the SEBI chairperson.