‘SEBI chairperson Buch is corrupt’, alleges Zee’s Subhash Chandra

Subhash Chandra accuses SEBI chair Buch of corruption; blames her for Zee-Sony merger failure

After Hindenburg, Congress attacked, and Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch also came under attack from Subhash Chandra, head of Zee Group. He alleged corruption at SEBI and called for further investigation and analysis. He alleged that one Manjit Singh, recommended to him by the secretary of a bank’s chairperson, approached him in February to resolve all pending issues at SEBI for a “price.” Zee Group is currently being probed by the markets regulator for alleged fund diversion of over Rs.2,000 crore from the media behemoth.

“I am convinced that the SEBI chairperson is corrupt since she and her husband whose combined income, which was around Rs.1 crore per annum before she assumed the position at SEBI, has now gone up to Rs.40-50 crore per annum. This needs to be investigated by media and investigating agencies, including analysis of the settled and compounded cases and the consultation fees paid by such corporates and received by the SEBI chairperson and her connected persons. These are many ways she and her husband extort money from corporates and stock market corrupt operators and fund managers,” said Subhash Chandra on Monday in a press conference, he alleged.

The regulator is in the process of issuing fresh show cause notices to Chandra and his son Puneet Goenka in the matter, said SEBI officials, terming Chandra’s allegations as malicious. Chandra also alleged former ICICI Bank CEO Chanda Kochhar was giving Buch “heft sums of money” and they made at least 20 calls to each other every day.

“It was Kochhar and her husband, and Madhabi Puri Buch and her husband working in tandem. Hence, Madhabi Puri Buch was paid hefty sums of money by ICICI while she was the WTM at SEBI,” Chandra said.

In an order in August 2023, SEBI barred Chandra and his son Punit Goenka from holding key positions in four group firms. In June 2023, SEBI had alleged fraudulent practices and fund diversion by promoters from Shirpur Gold Refinery, an Essel Group firm. The uncertainty created by SEBI’s action against the founders scuttled the $10 billion merger between Zee and Japan’s Sony’s India unit.

“The Zee-Sony merger was progressing well and it had got stock exchange approval. Despite the same, SEBI instructed BSE/ NSE to intervene in NCLT proceedings and scuttle the merger by spooking Sony. Ultimately the merger was terminated by Sony which resulted in the erosion of the huge wealth of minority shareholders,” Chandra said.

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