GECs
Star having a rethink on its DTH plans
Star India, which in January was reported to have in place the blueprint for its DTH operations, appears to be having second thoughts after the government’s recent notification that there would be no changes to the guidelines it issued to broadcasters in November 2000.
Altaf Ali Mohammed, president digital platforms group, who had been brought in from Hong Kong to oversee Star’s DTH project in December last after Star abandoned its DTH plans for Hong Kong, has this to say: “At this point, the risks of going in for DTH are much higher than the possible rewards.”
“Even leaving aside the guidelines themselves, which are anyway extremely stringent, the government has not spelt out clearly some other issues,” Mohammed says. “ As far as computing our costs go, we still don’t have a clear picture on what spectrum usage fees and the uplinking licence fee mentioned in the notification will entail. Add the service tax and new income tax regime in the present budget and it effectively leaves us with little room to manouvre,” Mohammed says.
Queried whether Star has given up on DTH, Mohammed says: “We are putting together a business plan which will go into all aspects of this and the whole process will take at least 30 days. If at the end of this, we feel it is commercially viable for us to get into DTH we will, otherwise no.”
Why a business plan is required at this stage is the question if talk that Mohammed had already readied a report to be presented before the Star’s board in Hong Kong is true. Especially considering that in January, Star officials were quoted as saying that “in the absence of any positive response from the government on the issue of raising the foreign equity ceiling to a minimum of 49 per cent, it was anyway launching the project to take a first mover advantage.
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.
