Shares of Zee Entertainment Ltd. (ZEEL) cracked 30.92 per cent on the NSE on Friday but are showing early signs of recovery so far today.
The contention began on Friday after The Wire posted an article regarding Zee Entertainment and it’s holding company, The Essel Group’s alleged transactions with Nityank Infra. Nityank Infrapower is a company being probed by the Serious Fraud Investigation Office (SFIO) for deposits of over Rs 3,000 crore made just after demonetisation.
ZEEL denies dealings with Nityank
In response to the allegation, ZEEL promoter, Subash Chandra in an open letter to the NSE, said, “We wish to reiterate and confirm that Zee Entertainment Enterprises Ltd has no connection whatsoever with any alleged transactions contained in the article published by a website. Essel Group had already confirmed that Nityank lnfrapower and Multiventures Ltd is an independent company and does not belong to Essel Group.”