GECs
CAS back on industry radar screen
NEW DELHI: Conditional access system (CAS), which had fallen off the radar screen of the media industry and consumers, is set to stage a come back.
The final round of arguments in a case filed by MSO Alliance relating to addressability will get completed on 15 September with the central government promising to clarify its stand on the issue by then.
At a hearing at the Delhi High Court today, the petitioner and another respondent, broadcast regulator Telecom Regulatory Authority of India (Trai), submitted their final responses with the government counsel requesting few days to allow his client to come back to the court with a status report on CAS.
The court has also sought some legal clarifications from Trai on whether a law passed by the government or the Executive (notifying CAS for implementation) can remain in suspended animation forever.
MSO Alliance, an apex body of multi-system operators in the country, had moved the Delhi HC some months back seeking judicial succour with the present government dragging its feet on the issue of CAS after the previous government had suspended CAS implementation early 2004 ahead of the general elections that year.
What has strengthened MSO Alliances case is the fact that Trai has submitted before the court that it had given its recommendations on CAS and ways to implement it in phases to the present government on 1 October 2004, but has got no response from the information and broadcasting ministry till
date.
Trai has conveyed to the Delhi court that if the government wants to reject its recommendations on CAS , then it has to convey so, which has also not happened.
It is expected that with the government making its mind on CAS known to the court by 15 September, a clearer picture on the issue of addressability is likely to emerge. The courts observations too would be important in this regard.
CAS, a brainchild of former I&B minister Sushma Swaraj during the previous governments regime, had hit a political wall ahead of polls despite months of industry-ministry interactions on ways to implement addressability in the country. The present government too has shown much inclination to implement CAS beyond a point.
MSO Alliance has alleged in its petition that suspension of CAS has resulted in financial losses to multi-system operators as cable companies had invested in infrastructure on assurance from the previous government that CAS would be implemented.
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.
