GECs
A two-sided story
MUMBAI: The rupee going into a tailspin or prices shooting through the roof; be damned. The wheels of general entertainment channels (GECs) seem to be in continual motion, what with a new soap here or a new reality show there. Makes one wonder as to what exactly these television majors do to keep their employees happy and productive, despite taxing schedules and OTT deadlines.
Well, the answer lies in the kind of incentives and rewards these channels, rather – their human resources teams, are willing to heap on their staff just so as to make them want to come back every morning, ready for the grind.
And we’re not simply talking boxes of chocolates or free tickets to movies here. Imagine an iPad being gifted for a clean and decorative desk or a five-star hotel stay in Australia or even a shopping spree in Bangkok…
An example of the kind of moolah these companies are willing to splurge on their employees is Star India, which took its top management (nearly 35 people) on an extravagant tour down under a month or two back.
While Viacom18 arranged separate tours to exotic destinations like Egypt or more popular ones like Bangkok early this year. In a similar vein, Sony took its employees to Dubai last year whereas Zee ferried its entire team to the beaches of Thailand. We hear Sony is currently planning an itinerary for its annual trip this year.
While these junkets (even called off-sites) don’t come cheap for these companies, there’s a catch: they aren’t entirely about fun and booze. There are leadership and team-building exercises, presentations on progress reports, panel discussions about the future etc. built into these trips.
But with employees not expected to shell out anything from their own pocket, they’re fun nevertheless.
However, there’s another side to this ‘Television (GECs) shining’ story.
Even as most of them are coughing up crores of rupees on such junkets, there are other channels like news channels that are finding it difficult to survive in the present economic situation.
There have been widespread instances of companies handing out pink slips to their employees in the past few months.
First, NDTV shut down its Mumbai operations, followed by Network18 relieving around 350 employees across the network in little over a month. Next in line was Bloomberg TV which terminated the services of nearly 30 employees and the latest to join the bully gang is Ananda Bazar Patrika (ABP), which is learnt to have issued notices of non-renewal of service contracts to as many as 127 employees and speculations are ripe that even Business World magazine is closing shop soon.
According to a study by the New Delhi-based Associated Chamber of Commerce and Industry (ASSOCHAM), the weak rupee hasn’t spared even Bollywood producers, who’re shying away from shooting overseas. In the past four months, foreign film shoots have dropped 30-35 per cent owing to the volatility in currency.
Given this not-so-bright side of the television (and film) industry, one wonders if life is truly a soap opera for GECs…
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
