Mumbai, Aug 1, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) has barred Zee Entertainment Enterprises Ltd (ZEEL), Managing Director and CEO Punit Goenka, and Essel Group Chairman Subhash Chandra from the securities market after concluding that the company’s Hyderabad land was mortgaged to secure loans taken by Essel Group entities without obtaining the required corporate approvals.
In its final order, SEBI prohibited ZEEL from accessing the securities market for two months, while Goenka and Chandra have been restrained from participating in the securities market for one year.
The market regulator also imposed monetary penalties amounting to Rs 1.48 crore. ZEEL has been fined Rs 30 lakh, while penalties of Rs 58 lakh and Rs 60 lakh have been levied on Goenka and Chandra, respectively. The regulator directed all three to pay the penalties within 45 days.
According to SEBI, the case originated during the statutory audit of ZEEL’s financial statements for 2018-19, when auditors flagged the absence of original title deeds relating to certain immovable properties.
The investigation found that four Essel Group companies had borrowed Rs 726 crore from Indiabulls Housing Finance Ltd (IHFL) in December 2016, with Essel Home Pvt. Ltd. acting as a co-borrower. These entities were ultimately controlled by Goenka, Chandra and their family members through multiple corporate structures.
After the borrowers failed to maintain the stipulated security cover, IHFL sought additional collateral in November 2018. SEBI found that on December 27, 2018, ZEEL’s original title deeds for its Hyderabad property were deposited with the lender to create a first-ranking mortgage as additional security for the loans.
The regulator held that the mortgage was executed without prior approval from ZEEL’s Audit Committee, Board of Directors or shareholders. SEBI noted that the company later informed the regulator that neither its management nor its board had authorised the transaction or were aware of the mortgage.
SEBI further observed that the transaction qualified as a related-party transaction under ZEEL’s financial statements for FY2018-19 and FY2019-20, requiring mandatory approvals and disclosures under the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
Holding that the company and its top executives had violated provisions of the LODR Regulations and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003, SEBI passed the final enforcement order against all three entities.
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