Zee’s stocks tumble after The Wire’s report linked Essel Group to large deposits made after demonetisation

The shares of Zee Group companies tumbled at least 19 per cent after a report said that its controlling shareholder Essel Group’s name had emerged in a probe linked to large deposits made after demonetisation, BloombergQuint reported.

“The Serious Fraud Investigation Office (SFIO) is currently probing a company called Nityank Infrapower (formerly Dreamline Manpower), for deposits of over Rs 3,000 crore made just after demonetisation (November – December 2016),” The Wire had reported on January 24. It also stated that documents showed “Nityank and a group of shell firms carried out financial transactions that involved a few firms associated with the Essel Group of Subhash Chandra between 2015 and 2017”.

“A Zee Group spokesperson didn’t respond to BloombergQuint’s calls to seek clarity,” BQ‘s report stated.

According to the report, “Shares of broadcaster Zee Entertainment Enterprises Ltd fell nearly 25 per cent—the most since October 2008—to Rs 326.60 a piece on National Stock Exchange. The stock was on track for its worst every single-day fall since March 1999.”

“Shares of Zee Learn Ltd. fell as much 19.6 per cent—its worst intraday fall. Essel Propack Ltd. and Dish TV India Ltd. plunged 18.6 per cent and 21.2 per cent, respectively,” the report stated.