Subhash Chandra , chairman emeritus of Indian media giant Zee Entertainment Enterprises Ltd (ZEEL), has accused Madhabi Puri Buch, chair of regulator Securities and Exchange Board (SEBI) of scuppering the Sony -ZEEL merger.

At a press conference on Monday, Chandra accused Buch of being “corrupt” and “vindictive” and stated that Zee’s issues with SEBI were the “primary reason” for the merger's collapse.

In June 2023, SEBI barred ZEEL MD-CEO Punit Goenka and Chandra from holding any managerial or directorial positions in listed companies. The suspension was while SEBI carried out investigations into allegations of insider trading. The SEBI notice made multiple reference to “siphoning” of funds. India’s Securities and Appellate Tribunal (SAT) set aside the SEBI order in November. “They set aside everything. If you read the order, they are stopped short of saying that there is total prejudice against this group,” Chandra said on Monday.

The merger was called off in January of this year. In February, a Bloomberg report claimed that SEBI had uncovered a discrepancy of approximately $241 million in ZEEL’s financial records and that company founders were being summoned for questioning. “Reports and rumors regarding accounting issues within the company are inaccurate and false,” was ZEEL’s response at the time.

On Monday, Chandra revealed that while the merger was ongoing, he wrote to India's finance minister Nirmala Sitharaman: “I have informed her that Madhabi Puri Buch is obstructing the Zee-Sony merger, directly and explicitly, but received no response.”

Chandra now plans to take legal action against the SEBI investigation, which is still ongoing. “I refuse to be subjected to this investigation by a corrupt individual. Feel free to have me investigated by anyone, any third party, anyone impartial,” Chandra stated.

Chandra's accusations against Buch follow allegations made by India's opposition party Congress that Buch also holds a paid position at ICICI Bank and has received $2 million in benefits from the bank and its subsidiaries.

“SEBI has not acted in the best interests of ZEE Entertainment investors. The ZEE Sony merger was progressing smoothly and had received SEBI/ Stock exchange approval. Despite this, SEBI instructed BSE/NSE [Bombay Stock Exchange/National Stock Exchange] to interfere in NCLT [National Company Law Tribunal] proceedings and disrupt the merger by alarming Sony. Ultimately, Sony terminated the merger, resulting in a significant loss of wealth for minority shareholders,” Chandra said in a statement after the press conference.

"Given the circumstances, I have decided to stop cooperating with SEBI in my personal capacity. I no longer hold them in high regard. I urge Zee Entertainment to do the same; as this probe is biased and driven by the SEBI chairperson's preconceived notions," Chandra added.