MUMBAI: In a major restructuring move, Padmalaya Telefilms Ltd. board of directors have accepted the resignations of Atul Goel and Rajiv Garg as directors of the company with effect from 10 December, 2004 and the resignation of K Srinivasan as director of the company with effect from 7 December 2004.

The company has also accepted the resignation of G Adiseshagiri Rao as chairman and managing director of the company with effect from 1 January, 2005. Rao will continue as non executive director of the company.

The development follows Zee Telefilms Limited (ZTL) making allegations of misappropriation of 6,264,631 equity shares that Padmalaya Enterprises Private Ltd (PEPL) held in Padmalaya Telefilms Ltd (PTL). ZTL has also announced that it would be seeking market regulator Securities and Exchange Board of India's (SEBI) intervention for action against the promoter shareholders of Padmalaya.

When contacted, ZTL spokesperson told indiantelevision.com, "All of the nominees and executive members representing Zee in Padmalaya have resigned. Now it is up to the major shareholders who will meet to decide the future course of action."

Rao was unavailable for comment.

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