Delhi high court reserves judgment on Bloomberg’s appeal against Zee report withdrawal order. The case revolves around a contested article alleging a $241 million accounting anomaly at Zee Entertainment.
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DELHI: On Thursday(7th March),the Delhi High Court has concluded its hearings and reserved its judgment regarding Bloomberg’s appeal against a previous trial court directive. This directive had mandated the withdrawal of a contentious report alleging financial discrepancies at Zee Entertainment Enterprises Ltd.
Presiding over the case, Justice Shalinder Kaur has called upon all involved parties to submit their written arguments, setting the stage for an impending verdict. The controversy centers around a Bloomberg article published on February 21, 2024, which claimed that the Securities and Exchange Board of India (SEBI) had identified a significant accounting anomaly amounting to $241 million within Zee Entertainment.
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Representing Bloomberg, senior advocate Rajiv Nayar challenged the trial court’s decision, criticizing it for lacking a solid foundation and for being issued without a preliminary examination of the facts.
“This order lacks a prima facie case, exhibits no discernible balance of convenience, and does not demonstrate any potential for irreparable loss or hardship.”
-Nayar was quoted, underscoring the perceived arbitrariness of the trial court’s ruling.
Nayar further defended Bloomberg’s reputation, arguing that the media giant was unjustly sidelined during the trial court’s deliberations.
“Bloomberg is a reputed channel and media company,”
– he stated, lamenting the absence of an opportunity for the news platform to present its side before the issuance of the contentious order.
The dispute traces back to Bloomberg’s report titled ‘India Regulator Uncovers $241 Million Accounting Issue at Zee,’ which Zee Entertainment vehemently disputed. Following the publication, Zee initiated legal action against Bloomberg and three of its journalists, leading to the March 1 ex parte order for the story’s removal.
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Zee Entertainment has firmly contested the allegations made in the Bloomberg article, asserting that the report contained inaccuracies and misrepresented facts about the company’s financial health and governance.
“Bloomberg inaccurately reported that the Securities and Exchange Board of India (SEBI) discovered a $241 million accounting issue at the company. However, there is no official order from the mentioned regulator confirming such findings.”
– stated a Zee media release.
The company further claimed that the article was published with malicious intent, significantly damaging Zee’s market standing and leading to a 15 percent plunge in its stock price, thereby inflicting substantial financial harm on its investors.
This case underscores the ongoing tension between media freedom and the protection of business interests.
