MUMBAI: Subhash Chandra, the media baron who rode India’s tumultuous media and entertainment scene to make Zee Entertainment EnterprisesNSE -3.99 % (ZEE) one of India’s biggest media groups, on Monday quit as chairman of the company which he founded in 1992 after watching CNN make a big splash with satellite television. He will, however, continue as a non-executive board member, ZEE said in a statement.
The resignation comes days after Chandra’s family saw its stake in ZEE fall to 5% following a series of mistimed and expensive infrastructure bets. Chandra’s investment companies had borrowed heavily from mutual funds and non-bank firms to fund road and renewable energy projects.
The family had pledged ZEE shares to obtain these loans but was forced to sell and repay after lenders threatened to offload them in the market in case of a default.