Subhash Chandra Alleges SEBI Chairperson’s Corruption, Blames Madhabi Puri Buch for Zee-Sony Merger Failure

Subhash Chandra Accuses SEBI Chairperson of Bias, Corruption, and Unethical Conduct

ZEE founder Subhash Chandra has accused SEBI Chairperson Madhabi Puri Buch of bias, corruption, and unethical behavior. He alleged, “I believe SEBI’s Chairperson is corrupt because before joining SEBI, her combined annual income with her husband was around ₹1 crore, which has now increased to ₹40-50 crores per year.”

Chandra further stated that this matter should be investigated by the media and investigative agencies. The investigation should include an analysis of settled and compounded cases, as well as the consultation fees paid by companies. These are some of the ways she and her husband allegedly extract money from companies, corrupt operators, and fund managers in the stock market.

A SEBI official, dismissing all of Chandra’s allegations, responded, “These opportunistic comments are completely baseless.”

Madhabi Puri Buch Blamed for the Collapse of Zee-Sony Merger Deal

Chandra also held Madhabi Puri Buch responsible for the collapse of the Zee Entertainment and Sony merger deal. He stated that due to SEBI’s actions, the $10 billion merger between Zee and the Indian unit of Japan’s Sony was called off.

Chandra mentioned that the Zee-Sony merger was progressing well and had even received approval from the stock exchanges. However, SEBI allegedly instructed the BSE/NSE to interfere in the NCLT proceedings and intimidated Sony, leading to the eventual cancellation of the merger. This, in turn, caused significant losses to small shareholders.

Allegations of Illegally Receiving Crores from ICICI Bank

Chandra further accused Madhabi Puri Buch of illegally receiving large sums of money from ICICI Bank. He claimed that former ICICI Bank CEO Chanda Kochhar was paying Buch a “substantial amount,” and they were allegedly in contact at least 20 times a day. Chandra stated, “It has come to light this morning that she was illegally receiving crores of rupees from ICICI Bank.”

SEBI’s 2023 Accusation Against Chandra and His Son

In August 2023, SEBI issued an order barring Chandra and his son Puneet Goenka from holding key positions in four group companies. In June 2023, SEBI had also accused the promoters of Shirpur Gold Refinery, a company under the Essel Group, of fraud and fund diversion.