Continuation of SAT Hearing on Subhash Chandra and Punit Goenka’s Plea

The Securities Appellate Tribunal (SAT) has announced that it will proceed with the hearing of Zee Entertainment Enterprises’ plea challenging the interim order issued by the Securities and Exchange Board of India (Sebi) on June 26. This plea was filed by Subhash Chandra, Chairman Emeritus of Zee Entertainment Enterprises, and Punit Goenka, the company’s Managing Director and CEO.

Previously, the SAT declined to grant any interim relief to Subhash Chandra and Punit Goenka, following Sebi’s decision to prohibit them from holding positions as directors or key managerial personnel in any listed company due to allegations of fund misappropriation within the media firm.

Consequently, Zee Entertainment Enterprises has appealed against the Sebi order at the SAT.

Simultaneously, the National Company Law Tribunal (NCLT) hearing regarding the potential merger of ZEEL with Sony Pictures Networks India is also scheduled for June 26.

During the proceedings, the legal representative for Zee Entertainment Enterprises argued that Sebi lacked evidence beyond bank statements to substantiate the allegations of fund round-tripping and emphasized that Sebi cannot issue an ex-parte order.

The counsel requested a stay on the Sebi order on behalf of Zee Entertainment Enterprises.

Additionally, the counsel “All entities through which Sebi alleges round-tripping, have genuine business relations with Zee.”

In response, Sebi, in its affidavit to the SAT, had accused Chandra and Goenka of diverting public funds to private entities, emphasizing the need for immediate action.

Sebi stated in its affidavit, “In the instant case, we have a situation before us where the Chairman Emeritus and the Managing Director and CEO of this large listed company are involved in a myriad of different schemes and transactions through which vast amounts of public money belonging to listed companies are diverted to private entities owned and controlled by these persons.”