The investigation into Chandra and Goenka began after two independent directors of ZEEL resigned in November 2019. The independent directors had raised concerns about the fact that ZEEL's fixed deposit had been appropriated by Yes Bank to settle a loan taken by ZEEL's related entities. The guarantees for the loans had been given without ZEEL's Board's approval.

SEBI's investigation found that Chandra had provided a Letter of Comfort to Yes Bank, which allowed Yes Bank to use ZEEL's fixed deposit to settle the loans of seven associate entities owned by Chandra and Goenka's family members.

ZEEL had claimed that the associate entities had returned the funds to ZEEL, but SEBI found that the money had simply been routed through various other entities to make it look like it had been returned.

SEBI also found that ZEEL had made false disclosures in its annual report about the receipt of funds from the associate entities.

ZEEL shares tumbles as the latest development could delay ZEEL's proposed merger with Sony Pictures Networks India. Further, SEBI order also means Goenka may not be able to hold a senior role in the Zee-Sony merger entity.

ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.

ZEEL reported a consolidated net loss (from continuing operations) of Rs 72.89 crore in Q4 FY23 as against a net profit of Rs 244.35 crore posted in Q4 FY22. Revenue from operations declined 9% year on year to Rs 2,112.11 crore in the quarter ended 31 March 2023.