$619 mn ED notice to Zee

$619 mn ED notice to Zee

Author | exchange4media News Service | Tuesday, Dec 14,2004 8:26 AM

$619 mn ED notice to Zee

The Enforcement Directorate has proposed to issue a notice to Zee Telefilms Ltd (ZTL), asking the company to repatriate $618.84 million, which is "liable to be confiscated".

The latest action taken report (ATR) of the ministry of finance on the findings of the joint parliamentary committee (JPC) on the stock market scam says the directorate found unauthorised transfer of over 19.4 million Zee Telefilms shares abroad, valued at $470.48 million.

The report, which was tabled in both houses of Parliament on December 9, says the directorate had issued a show-cause notice to ZTL and six other entities after it came across the transfer.

The shares were transferred to Mauritius-based Delgrada Ltd and Wakefield Holdings for acquiring 100 per cent of Zee Multimedia Worldwide.

In another transaction, the directorate alleged, ZTL transferred 16.1 million of its shares and made cash remittance of $148.25 million to the Star group of companies for buying a 100 per cent stake in Winterheath Company, BVI. This transfer and cash remittance were made without the required clearances from the Reserve Bank of India, the report documents.

When contacted, a Zee Telefilms spokesperson said: “We have already submitted a detailed rebuttal to the issues raised in the notice. These issues have been clarified previously also. We are confident of a positive outcome.”

The alleged transfer of securities to Delgrada and Wakefield Holdings involves violation of provisions relating to the transfer or issue of security by a person living outside India under the Foreign Exchange Management Act.

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