ED conducts search at Essel Group Continental Office in Mumbai

The Enforcement Directorate (ED) on January 24 searched the Essel Group Continental Office in Mumbai, reported ET Now citing sources.

Market regulator Securities and Exchange Board of India (Sebi) is already probing Zee Entertainment and Essel Group companies. The report claims that the ED search has been going on since the afternoon.

Earlier in the day, Zee Entertainment said it had approached the National Company Law Tribunal (NCLT) against Sony’s decision to call off the proposed merger.

The firm also initiated legal action to contest Sony’s claims of $90 million (around ₹748.5 crore) as a termination fee, for which the Japanese firm has moved the Singapore International Arbitration Centre (SIAC).

Zee Entertainment has asked Culver Max and Bangla Entertainment Pvt Ltd (BEPL) to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the merger scheme, sanctioned by the NCLT, the Zee Entertainment Ltd said in a regulatory filing on Wednesday.

“The company has called upon Culver Max and BEPL to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the merger scheme,” added Zee in its exchange filing.

Two days ago, Sony announced the termination of its merger deal with Zee. In a statement, it said that certain “closing conditions” to the merger were not satisfied despite “good faith discussions” with Zee, and the companies had been unable to agree upon an extension by their January 21 deadline.

“After more than two years of negotiations, we are extremely disappointed. We remain committed to growing our presence in this vibrant and fast-growing market,” Sony added.

As per the merger agreement, signed on December 22, 2021, Zee and Sony Pictures Networks India (now known as Culver Max), along with Bangla Entertainment Pvt Ltd, were to be merged into a single entity within 24 months. LiveMint