INSUBCONTINENT EXCLUSIVE:
He apologised to his bankers, non-banking finance companies and mutual funds, after shares of group companies crashed during the day.
The
immediate trigger for the sharp drop in shares (Zee Enterprises fell over 26%, Dish TV by nearly 33% and Essel Propack 16%) appeared to be a
news report on the website thewire.in, which mentioned alleged links between the group and Nityank Infrapower and Multiventures, a company
that is under the scrutiny of the Serious Fraud Investigation Office (SFIO) for deposits of over Rs 3,000 crore during or after
demonetisation.
Some of the developments mentioned on the website had also been reported by ET on December 18.
In statements issued on
Instead, he said he was compelled to apologise to bankers, NBFCs and mutual funds as he had not lived up to their expectations.
He said
ChandraChandra admitted that the ballooning debt was also a result of some other decisions, notably the acquisition of DTH operator Videocon
evening, Zee MD Punit Goenka said Essel Group promoters had total debt of Rs 11,000-12,000 crore.
Chandra had pledged shares of his listed
companies to borrow funds to invest in Essel Infra, the unlisted infrastructure company.
He pointed out in his mea culpa that till December,
He said anonymous letters were written to regulators whenever the company announced good results.
Referring to the stake sale in Zee
in the US and London last week and that the company is now in talks with a number of players.
Chandra asked investors to repose faith in the
company.
INVESTORS LOSE Rs 13,686 CROREThe crash in the shares of group companies wiped off nearly Rs 13,686 crore of investor wealth, as
himself, which added to his troubles.
ET had first reported on December 18 that Nityank Infrapower and Multiventures (formerly known as
Dreamline Manpower Solutions), a company with apparent links to Essel, was being investigated by the SFIO.
In a late Friday evening
The group at this stage does not wish to comment on the legal matter between Dish TV and Videocon Group, since the same is sub judice
compliance of applicable laws and regulations and through proper banking channels
The said investigation or the mentioned transactions do not have any bearing or connection with any of the operating entities of Essel
approached the Delhi High Court on August 31 last year, claiming it had received payment from Essel through Nityank as an advance for
Projects, Pan India Network Infravest and Mumbai WTR.
Videocon first approached the Delhi High Court on the grounds that Essel had
unlawfully invoked a pledge on Videocon D2H shares that were kept in its custody till the merger with Dish TV received regulatory
approval.
It also claimed the shares were given as security if the merger failed, since it had already received an advance from Essel.
