SEBI finds ₹63.61 crore written off by Eros over MGEL advances

This order details SEBI's investigation into Mediaone Global Entertainment Ltd. (MGEL) and its directors regarding serious irregularities, including the diversion of funds and falsification of financial statements, discovered during a broader inquiry into Eros International Media Limited.

M/s. Mediaone Global Entertainment Ltd., Mr. Suryaraj Kumar, Mr. J Murali Manohar, Mr. K Sai Prasad, Mr. M Srinivas Kumar, Mr. Timothy Alfred Joseph Moses, Ms. Saraswathy Gopalan

• SEBI detected serious irregularities relating to diversion of funds, manipulation of books of accounts, and falsification of financial statements.
• Eros International Media Limited wrote off ₹63.61 crore in FY 2019–20 towards advances given to MGEL for film co-production.
• The written-off amount exceeded MGEL's total asset base for the relevant period.
• MGEL reported negligible revenues for several preceding financial years, with no business operations from FY2016-17 to FY2021-22.
• Trading in MGEL shares was suspended by BSE from June 27, 2016, to May 03, 2022, due to non-compliance with listing regulations.
• MGEL was under liquidation proceedings initiated by the Madras High Court, which were lifted in January 2023.
• The company reported net losses in eight consecutive years (FY2014-15 to FY2021-22) before reporting profits in FY2022-23 and FY2023-24.

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