Enforcement Directorate Conducts Raids at Essel Group’s Mumbai Office, Report

ED Raids Subhash Chandra-owned Essel Group’s Mumbai Office

The Enforcement Directorate (ED) has carried out searches at Essel Group’s Mumbai office, which houses the offices of various subsidiaries, including Zee Media, according to sources

The raids, conducted on Wednesday, involved scrutiny of Essel Group’s staff. Notably, the Mumbai premises also host offices of Zee Learn, Mount Litera Edu Foundation, Essel Homes, and Essel Infra and Housing.

This development follows closely on the heels of Sony Pictures Entertainment’s decision to call off the proposed $10 billion merger with Zee Entertainment Enterprises Ltd. The breakdown of talks was allegedly due to a deadlock over whether Zee’s CEO, Punit Goenka, would lead the merged entity. Goenka is currently under investigation by the capital markets regulator SEBI, further complicating the situation.

Sources suggest that Zee Entertainment has taken legal action against Sony by moving the National Company Law Tribunal to challenge the claims made by Sony before the merger was canceled. The company has reportedly contested Sony’s demand for $90 million in arbitration proceedings.

In the aftermath of the Zee-Sony fallout, the Subhash Chandra-owned company is contemplating legal actions against Sony. Earlier reports from Newslaundry indicate that a week before Sony terminated the merger, Chandra had written to Finance Minister Nirmala Sitharaman, accusing SEBI of operating with a motive to sabotage the deal.

Newslaundry has previously reported on the challenges faced by Chandra’s media empire, highlighting his efforts in recent years to repay debts and the intricacies of the company’s financial situation. The unfolding events underscore the complexities and uncertainties surrounding Essel Group and its prominent ventures in the media and entertainment sector.