India’s market regulator, SEBI, has issued a sweeping show-cause notice to Zee Entertainment Enterprises Ltd. (ZEEL), its Chairman Emeritus Subhash Chandra, and CEO Punit Goenka. The notice, dated February 12, 2026, involves 84 other entities and individuals, effectively reigniting a multi-year investigation into the broadcaster’s internal financial dealings. The current regulatory storm centers on a Letter of Comfort (LoC) issued by Subhash Chandra in September 2018. According to SEBI, this document was used to secure credit facilities from Yes Bank for associate entities within the Essel Group. SEBI alleges that the ZEEL board was kept in the dark about this LoC. The regulator claims that Yes Bank subsequently appropriated a ₹200 crore fixed deposit belonging to ZEEL to settle the obligations of these promoter-controlled associate entities. Investigations suggest that while Zee claimed to have received the funds back, the money actually originated from Zee itself or other Essel Group companies through a series of “layers.”Zee Entertainment has vehemently denied all accusations, labeling the investigation as “unduly prolonged” and sparked by “vested interests” back in 2019. In a formal statement, a company spokesperson emphasized: The company strongly refutes all allegations. We are committed to the highest standards of governance and will take all required legal steps to protect the interests of our shareholders. “The company also pointed out that an independent investigation committee, led by a former High Court judge, had previously found “no material irregularities” in the transactions under review.
SEBI Revives Zee Fund Diversion Probe: Fresh Show-Cause Notice Hits Punit Goenka and Subhash Chandra
