Sans Governance, ESG is a Lame Duck

The recent events surrounding Paytm and Zee Entertainment serve as a chilling reminder of the critical importance of good governance, particularly the ‘G’ in ESG principles. Investors in One 97 Communications, Paytm’s parent company, witnessed a staggering ₹20,000 crore vanish within three trading sessions after the Reserve Bank of India (RBI) raised concerns about ‘material supervisory concerns’ and ordered the closure of Paytm Payments Bank. Similarly, Zee Entertainment shareholders saw their wealth erode by ₹7,000 crore in a single day following the collapse of the Zee-Sony merger deal, fuelled by unease around potential financial irregularities.