Today (March 14th), the Delhi High Court upheld a directive instructing Bloomberg to remove a report accusing market regulator Securities and Exchange Board of India (SEBI) of uncovering a $241 million accounting irregularity at Zee Entertainment.
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NEW DELHI: The Delhi High Court today confirmed a previous ruling requiring the news outlet Bloomberg to retract a controversial report that claimed the Securities and Exchange Board of India (SEBI) had detected a financial discrepancy amounting to US $241 million in the accounts of Zee Entertainment.
Justice Shalinder Kaur presided over the case and mandated Bloomberg to comply with the order to remove the contentious article within a three-day timeframe. The court explicitly stated,
“It is clarified that the appellants shall comply with the trial court order within three days,”
-underlining the immediacy with which the High Court expected the news platform to act.
In response to the court’s decision, Zee’s legal representative, Vijay Aggarwal, promised the court that his client would refrain from initiating a contempt of court action against Bloomberg until the following Tuesday. However, the court was unyielding when Bloomberg’s counsel requested a delay in the enforcement of the removal order for a week, citing logistical challenges due to key signatories being overseas. The court dismissed this plea, stating,
“We have given you sufficient time,”
-indicating their belief that the timeframe provided was adequate for compliance.
The legal dispute began when Bloomberg contested a trial court’s directive to expunge an article that alleged SEBI had identified considerable accounting irregularities within Zee Entertainment. This directive was initially issued by Additional District Judge Harjyot Singh Bhalla from the Saket Courts, without Bloomberg’s side being heard, leading to their appeal to the High Court.
The controversial article, published on February 21, 2024, titled “India Regulator Uncovers $241 Million Accounting Issue at Zee,” suggested SEBI discovered an unexplained shortfall exceeding $240 million in Zee Entertainment’s financial records. In response, Zee filed a defamation lawsuit in a Delhi district court against Bloomberg and its journalists, claiming the article was slanderous and misrepresented the facts, as SEBI had not confirmed any misconduct against Zee.
During the High Court proceedings, Bloomberg’s attorney, Senior Advocate Rajiv Nayar, criticized the initial trial court’s decision, arguing it lacked foundational reasoning and did not consider the balance of interests or potential damages, asserting,
“This is the most amazing order. No prima facie case made, balance of convenience, irreparable loss or hardship,”.
He defended Bloomberg’s reputation, questioning the fairness of the trial court’s judgment.
On the other hand, Zee’s counsel, Vijay Aggarwal, argued that Bloomberg failed to substantiate its allegations with factual evidence, challenging,
“They don’t have a case on facts. If there is any in public record, dismiss my suit right now… Just because they are a company of international repute does not mean they can defame an Indian company,”
-highlighting the absence of solid evidence against Zee and criticizing Bloomberg’s journalistic integrity.
Bloomberg’s legal team was comprised of notable figures including Senior Advocate Rajiv Nayar, along with representatives from Kochhar & Co, led by Rohit Kochhar. Meanwhile, Zee’s legal defense included advocates Vijay Aggarwal and Naman Joshi.
This legal battle underscores the tension between corporate accountability, journalistic freedom, and the protection of business reputation in an increasingly globalized world.
CASE TITLE:
Bloomberg Television Production Services India Private Limited & Ors v Zee Entertainment Enterprise Limited
Click Here to Read Previous Reports of Bloomberg vs. Zee
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