Zee Promoters Subhash Chandra received Legal Notice from Axis Finance Over no payment of dues

Axis Finance said it will take Subhash Chandra and his son Punit Goenka to court if the Zee-Sony Pictures Network India deal does not close by the end of the year.

According to The Economic Times, Axis Bank’s subsidiary has sent a legal notice to Zee Entertainment’s promoters for non-payment of debts totaling Rs 146 crore.

If the Zee-Sony Pictures Network India merger does not close before the end of the year, Axis Finance said it will sue Subhash Chandra and his son Punit Goenka in court and write to the market regulator.

Axis Finance has issued a notice demanding that two Essel Group firms, Cyquator Media Services and Primat Infrapower & Multiventures, pay their debts.

“Please note that if you or your group of companies do not make payment to our customers within seven days of receipt of payment, our customers will have no choice but to commence proper legal proceedings against you, including a protest,” the warning stated.

The lender had extended a credit facility to both Essel Group firms, according to the notice, and pledges had been made in different group companies, including Direct Media Distribution Ventures, Essel Corporate LLP, and Primat Infrapower & Multiventures.

According to Mint, Zee refuted all claims made by Axis Finance in its response to the notice on Monday, calling them “meritless and unreasonable.”