Zee Ent forms independent advisory committee headed by ex-HC judge amid negative public opinion

Zee Entertainment Enterprises Ltd on Friday announced the formation of a three-member independent advisory committee aimed at reinstating shareholders' trust. 

The committee will be chaired by Dr. Satish Chandra, a retired judge from the Allahabad High Court. Additionally, Uttam Agarwal and P V Ramana Murthy, both independent Directors of the company, will serve as members of the committee.

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“We hereby inform you that while taking cognizance of widespread circulation of misinformation, market rumours, and speculation that has led to formation of negative public opinion about the company and consequent erosion of investor wealth, the Board of Directors of the company has constituted an Independent Advisory Committee headed by Dr. Satish Chandra, Retired Judge of the Hon’ble High Court of Allahabad, who shall be the Chairperson of the Committee, and two members of the Board, i.e. Mr. Uttam Agarwal and Dr. P V Ramana Murthy, Independent Directors of the Company,” the company said in an exchange filing.

At the beginning of the week, media reports surfaced alleging a 'accounting hole' of $240 million or ₹2,000 crore. However, the media company refuted these claims, dismissing them as inaccurate and untrue.

"Reports and rumours pertaining to accounting issues in company are incorrect and false. We are in process of providing all comments requested by SEBI and have extended complete co-operation on all aspects," news agency Reuters had quoted the company as saying.

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The $10-billion merger between Zee and Sony, which had been in progress for two years, was formally canceled on January 22. This proposed mega merger aimed to establish an Indian television powerhouse boasting over 90 channels spanning sports, entertainment, and news, positioning it as a formidable competitor against industry giants like Walt Disney and Mukesh Ambani's Reliance. 

Sony cited the termination of the merger, citing the Indian media company's purported failure to fulfill certain financial conditions of the agreement and disagreements over compliance matters, including the divestment of certain Russian assets.