Sony said then that it wanted to hear Zee's proposals on completing the "remaining critical closing conditions." The Securities and Exchange Board of India alleged in June that Zee faked the recovery of loans to cover private financing deals by its founder, Subhash Chandra. Chandra and his son, Goenka, "abused their position" and siphoned off funds, SEBI said in an interim order, barring Goenka from executive or director appointments in listed companies. While Goenka got a reprieve from an appellate authority against the Sebi order, Sony views the ongoing probe as a corporate governance issue, Bloomberg reported earlier. Sony Pictures Networks India Pvt. would have owned a 50.86% stake in the merged media firm and Goenka's family was to own 3.99% in the proposed transaction, according to the 2021 agreement. The proposed merger has received almost all regulatory approvals and would have helped expand Sony's media business in the world's most-populous country. Bloomberg