India Media Giant Rocked by Claims of Ties With Fraud Probe

  • Chandra battles to restore confidence after stock rout
  • Move comes as group tries to sell Zee Entertainment stake
Subhash ChandraPhotographer: Scott Eells/Bloomberg
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The media mogul behind India’s biggest television network is battling to restore confidence in his businesses after an online news site reported that Subhash Chandra’s Essel Group has links to a company that’s being probed by fraud investigators.

It began Friday, when a report by the Wire sent all of Essel’s seven units plunging, including a record 27 percent tumble at Chandra’s flagship TV broadcaster, Zee Entertainment Enterprises Ltd. A barrageBloomberg Terminal of denials and statements from the conglomerate since helped Zee and its two affiliates recover some of their losses on Monday, while the rest fell. Most Essel units extended declines Tuesday, though not as steeply as in the past couple of days.