'Don't let any tinge of negativity distract you...': Zee's Punit Goenka pens emotional note to employees

Zee Entertainment Enterprises Ltd MD and CEO Punit Goenka on Monday wrote an emotional letter to his employees hours after the media firm formed an interim committee to run operations.

Goenka asked his employees to stay positive and focus on company, while he is solving the problems at the promoter level. This, after ex-chairman Subhash Chandra and CEO Punit Goenka failed to overturn the market regulator's ban on them holding board positions.

The interim committee will be under the supervision of Zee's board, a company spokesperson said. Zee's shares closed 6.3% higher after Monday's announcement.

The letter reads, “There have been a lot of words that might have caught your attention. Especially the ones, that came with a tinge of negativity. And hence I thought, it is important for me to pen down this note for all of you, to ensure that there is utmost level of clarity and transparency.

“As you all might have noted, on 12th June 2023, I have been served with an ex-parte order by the Securities and Exchange Board of India (SEBI); with respect to certain transactions conducted at an Essel Group level in the year 2019. With the help of the legal experts, I am exercising my legal rights to seek justice. The Hon’ble Securities Appellate Tribunal (SAT) has given a hearing to the matter and has passed an order on 10th July 2023, setting a framework to this process. In line with the order and in accordance to the law, I am taking the next steps. There is nothing more to it.”

The Securities and Exchange Board of India in June banned Chandra and Goenka from holding board positions in publicly listed companies for a year, alleging they were actively involved in diverting funds to the group's other listed entities and firms related to founding shareholders.

Last week, the Security Appellate Tribunal refused to vacate the regulator's decision, saying it did not find any illegality or irrationality in SEBI's order and saw no merit in interfering.

It directed SEBI to pass a final order by the middle of next month and asked Chandra and Goenka to defend themselves before the regulator.

Goenka further wrote that the merger deal with Sony is "in the interest of al stakeholders" of the company. ZEE and Sony announced a merger in 2021 to form a $10-billion TV enterprise, with Goenka set to become the merged entity's managing director and CEO.

The letter further said: “Since the order restricts me from holding a director or key managerial position in a listed company, in the interim, the Board of our Company has constituted an Interim Committee of senior executives to ensure smooth operations and day to day functioning. The Interim Committee will be under the supervision of the Board and will seek its guidance on all matters pertaining to the Company.”

“The important point to be focused upon is not what is happening to me, but on what is happening, or should happen to our great Company; which we have together built over the last 30 years and more. The important point to be excited about is the fact that this Company is all set to merge with the most prestigious global media and entertainment brand – Sony.”

“I write to you today, more as a colleague and as a team member of yours, to make a humble request. Please do not let any tinge of negativity, distract you from the set goals for this Company. The problems or difficulties that I might be facing at a promoter family level, are for me to deal with; and which I am. Those, should never be the problems of the Company. For all of us, starting with me, the Company and its esteemed Shareholders; have been and should always be, the top most priority.”

“The proposed merger with Sony, has reached at a very important juncture. The Mumbai Bench of the Hon’ble National Company Law Tribunal (NCLT) has reserved its order pertaining to the approval, in the final stage of the hearing conducted on 10th July 2023. As you all must have also noted, the merger has already been cleared by the Competition Commission of India (CCI), Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and most above, by the esteemed shareholders of our Company.”

“As I have always maintained, this merger is in the interest of all stakeholders of the Company, including each one of you. And hence, the completion of the same has been my top priority. Today, as we have reached at a very advanced stage of the merger completion process, I seek your commitment and promise; that no matter what, you will remain focused towards your roles and responsibilities in this Company. If there is anything that should ever bother you, it should be an unfinished task that is in the interest of the Company.”

“To me, ZEE is no different than my 3 beautiful children back home. As a proud parent of this beautiful institution, I write to all of you, not as my team members; but as the true leaders of ZEE!”