Promoters of Essel Group have pumped in Rs 200 crore from their personal wealth in a bid to ring-fence Zee. This comes even as the Company is in the process of seeking legal advice to take appropriate action against a bank that adjusted Zee’s Rs 200-crore fixed deposit against dues of related entities within the group.
"The promoters of Essel Group took a step forward to ring-fence Zee, by replenishing Rs. 200 crore without any delay, in the interest of the shareholders and to avoid any loss of capital," said a source close to the development.
During the analyst conference call held on 17th October 2019 for Zee Entertainment Enterprises Ltd’s (ZEEL) Q2FY20 Results, the company said that it had a fixed deposit with a bank of Rs 20,000 lakhs. During the quarter ended 30 September 2019, the bank prematurely and unilaterally adjusted the amount of fixed deposit, which was maturing on 10 September 2019 against dues from related parties.
Subsequently, these related parties have reimbursed the amounts to the Company aggregating Rs 13,330 lakhs before 30 September 2019 (recorded as other financial liabilities) and Rs 6,670 lakhs after the quarter-end.