Essel Group Chairman Subhash Chandra on Monday said that the reports about his leaving the country amid ongoing debt crisis are false and come from vested interests. Essel Group is strong and will sail through difficult times, the veteran businessman told CNBC TV18, adding he is not running away. The principal amount of all lenders has already been paid, he added. It comes a day after Punit Goenka, CEO, Zee Entertainment and Subhash Chandra’s son, asked the people spreading rumours to focus on positive things. The group has already paid more than half of the total amount of aRs 11,000 crore to the lenders.
“It has been brought to my notice that certain mischief makers have insinuated that my father and our Chairman Shri @SubhashChandra has left the country. Vide this tweet, I wish to clarify straightaway, that He is very much in Mumbai at home,” tweeted Punit Goenka. Zee Entertainment shares were under pressure previous week on reports that a few lenders to the Essel group sold pledged shares of promoters of the company for more than Rs 200 crore last Monday. The Essel Group had entered into a standstill agreement with mutual funds till 30 September to repay dues, according to reports. This agreement prevented funds from selling the shares held as collateral.
SEBI said last Thursday that country’s asset management companies (AMCs) cannot resort to any kind of standstill agreement with borrowers. “There cannot be any standstill agreement between mutual funds and their borrowers. All entities need to follow the (mutual fund) regulations,” SEBI Chairman Ajay Tyagi said. Meanwhile, Zee Entertainment stock was trading at Rs 261.40, down 12.15 points, or 4.44 per cent on NSE at the time of reporting.