Mumbai: According to media reports, Sony is unlikely to pull out of the merger with Zee despite Sebi's fund diversion allegations against Essel Group chairman Subhash Chandra and Zee Entertainment Enterprises CEO Punit Goenka. Sony will stick to the merger's commitment without any alterations.

On 12 June, the Securities and Exchange Board of India (Sebi) issued an interim order alleging that Chandra and Goenka siphoned off funds and barred the father-son duo from holding any position on the board or key managerial positions in any listed company. While Chandra stepped down as Zee chairman in 2019, his son, Goenka, is Zee’s managing director and chief executive officer (CEO).

Zee has challenged Sebi’s order at the Securities Appellate Tribunal (SAT), which will next hear the matter on 26 June. In the interim, in a series of interactions over the past week, the two groups approved an alternative plan in case the worst-case scenario plays out.