SAT to review Zee CEO Punit Goenka's plea challenging Sebi order on June 26

The Securities Appellate Tribunal (SAT) in its June 19 hearing said that it will review Zee Entertainment Enterprises MD and CEO Punit Goenka’s plea on June 26. The plea challenges the interim order issued by the Securities and Exchange Board of India (SEBI), which prohibits Goenka from serving as a director or holding a key managerial position in any listed company.

The counsel appearing on behalf of Goenka asked for a stay on SEBI's order and said that SEBI has no evidence beyond bank statements to prove allegations of round-tripping of funds, and it cannot pass ex parte order.

SEBI took action against Essel Group Chairman Subhash Chandra and Goenka, alleging that promoters misrepresented investors and the regulator about the repayment of Rs 200 crore to ZEEL by seven related parties. It said that the Rs 200 crore repaid to Zee by seven borrowing entities actually originated from Zee and Zee did not receive any funds and the entries were just book entries.

Zee's counsel said that the books of Zee were not cooked and these were not just book entries. The counsel also asked for a stay on Sebi's interim order. The counsel further said that the amount was returned back by borrowing entities to ZEEL and the company also informed the same in 2019 through a corporate announcement.