Zee Group Shares Crash On Report Of Money Laundering Post Notes Ban

Zee Group on Friday suffered a loss in market capitalisation to the tune of Rs. 14,000 crore after the shares of its entertainment arm tanked over 30 per cent in the wake of a media report that said its promoter company Essel Group was allegedly involved in laundering money immediately after demonetisation.

The shares on the BSE lost up to 33 per cent during the intra-day trade but closed 26 per cent lower at Rs 319.35.

The shake up in Zee shares occurred after the report claimed that the SFIO (Serious Fraud Investigation Office) was probing a company, Nityank Infrapower, for deposits of over Rs 3,000 crore made just after demonetisation that was announced on November 8, 2016.

It also claimed that Nityak Infrapower and a group of alleged shell firms had carried out financial transactions that involved a few companies associated with the Subhash Chandra-led Essel Group between 2015 and 2017.

Zee Entertainment Enterprises shares fell nearly 31 per cent to Rs 299.92 per share on the National Stock Exchange. It was the worst day for the stock for a single day fall since 1999.

The media report also said that Nityank also played a crucial role in a large business deal between the Videocon and Essel groups in November, 2016.

Essel maintains that Nityank is an independent firm, while Videocon alleges otherwise.