Zee Entertainment MD and CEO Punit Goenka has said the company is in active engagement with Culver Max (formerly Sony Pictures Networks India) over their much delayed merger — amid murmurs of discord between them.

Sony is now asking its executive to lead the merged entity instead of Goenka, according to business daily Mint.

Sony views the allegations and investigation by the Securities and Exchange Board of India (Sebi) against Goenka as corporate governance issues and it wants to have its executive lead the merged entity, the daily said.

The National Company Law Tribunal (NCLT), however, has approved the scheme of merger, the biggest in India’s entertainment industry.

As per the merger agreement entered between the two in 2021, Goenka would continue as the chief executive officer and managing director for five years.

“We are in active engagement with Sony on various parts of the scheme to be finally implemented after getting all the approvals,” Goenka said at an earnings call after Zee announced its results for the quarter ended September 30, 2023.

Last month, the Securities Appellate Tribunal (SAT) had set aside a confirmatory order of Sebi against Goenka.

The market regulator had barred him from holding the position of director or key managerial personnel (KMP) in the company and other group firms for alleged siphoning off funds.

The confirmatory order by Sebi chairperson Madhabi Puri Buch had said Goenka and his father Subhash Chandra will not hold the position of a director or a key managerial person (KMP) in Zee Entertainment Enterprises, Zee Media Corporation Ltd, Zee Studios Ltd, a wholly owned subsidiary of Zee, and Zee Akaash News Pvt Ltd, a wholly owned subsidiary of Zee Media Corporation.

Chandra and Goenka will be similarly barred from any resultant company formed pursuant to a merger or amalgamation of the Zee companies with any other firm, wholly or in part.

They will not hold any top position in any company, which is formed under the demerger of any of the Zee firms.

Sebi had also said that its probe against the Goenkas shall be completed in a time-bound manner and any event, within eight months from the date of the order.

On Thursday, Zee reported 8.92 per cent rise in its consolidated net profit to Rs 122.96 crore for the second quarter ended September 30 against Rs 112.89 crore a year ago.

Total income rose 23 per cent to Rs 2,509.57 crore against Rs 2,040.87 crore in the year-ago period.