Zee promoter Subhash Chandra writes to lenders after report of a probe leads to bloodbath in Zee, Dish TV shares

By: | Published: January 26, 2019 12:39 AM

Subhash Chandra, whose interests span across media, entertainment and infrastructure sectors, admitted that his decision to acquire D2H from Videocon group with the help of his brother Jawahar Goel has cost both of them their fortunes.

Zee, zee tv shares, Zee promoter Subhash Chandra, Zee Entertainment, Essel Infra, Essel Group, Dish TV sharesIn the letter, he also accused certain forces acting against his interest that are trying to sabotage his bid to sell – Zee Entertainment – to repay his debts. (Photo source: IE)

Media mogul and Rajya Sabha member Subhash Chandra has written to his creditors saying that he will repay all the loans borrowed by him. In an unsigned letter issued from his desk on Friday evening, Subhash Chandra who controls Zee Entertainment, Dish TV and Essel Infra admitted making some wrong investment decisions leading to the present situation where he has been forced to sell – Zee Entertainment – the crown jewel of his media empire.

Subhash Chandra, whose interests span across media, entertainment and infrastructure sectors, admitted that his decision to acquire D2H from Videocon group with the help of his brother Jawahar Goel has cost both of them their fortunes.

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Chandra said like most infra companies he also made some incorrect bids, adding that while most of the infra companies have left their lenders with non-performing assets, he wasn’t ready to walk away from the situation and continued to pay interest and principal.

“My obsession of not walking away from the situation has made me to bleed 4000 Cr to 5000 Cr of Rupees,” said Mr Chandra in the letter.

Mr Chandra, who rose to become one of the leading media promoters in the country from a very humble beginning, said the situation became unmanageable for him when IL&FS issue came to the public knowledge as it made roll overs impossible that diminished his ability to service their debts.

In the letter, he also accused certain forces acting against his interest that are trying to sabotage his bid to sell – Zee Entertainment – to repay his debts.

Referring to a massive sell off that resulted in the share prices of his group companies Dish TV and Zee Entertainment plunging by up to 33% in Friday’s trade, Mr Chandra said these forces ‘attacked the share price today’ to sabotage his bid for a strategic sale of Zee Entertainment.

Following a report in news website – The Wire, the shares of Dish TV and Zee Entertainment plunged by up to 33% during the trade in Friday afternoon after it became public that Essel Group’s name has emerged in a demonetisation related probe by the Serious Fraud Office (SFIO).

Shares of Dish TV closed 32.74% lower at Rs 22.60, while Zee Entertainment shares closed 26% lower at Rs 319.35.

According to a report by The Wire, SFIO is currently probing a a company called Nityank Infrapower (formerly Dreamline Manpower), for deposits of over Rs 3,000 crore made just after demonetisation (November – December 2016).

The Wire reported that its examination of publicly available documents showed that Nityank and a group of shell firms carried out financial transactions that involved a few firms associated with the Essel Group of Subhash Chandra between 2015 and 2017. In an interview to ET Now, Jawahar Goel, CMD of Dish TV said that Essel Group has nothing to do with DeMo-related probe. The distributors deposited money in our accounts, which were reported to I-T department.

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