SAT refuses to stay SEBI order against Punit Goenka, Subash Chandra

Punit Goenka

The Securities Appellate Tribunal (SAT) on July 10 refused to stay SEBI's order that barred them from holding key management positions in any listed company.

The appellate tribunal had reserved the case for orders on June 27 after hearing both Zee Entertainment Chief Executive Officer Punit Goenka and SEBI at length.

While senior counsel Janak Dwarkadas appeared for Goenka, lawyer Somashekar Sundaresan appeared for Subhash Chandra. SEBI was represented by senior advocate Darius Khambata.

Also Read: In five charts: How ZEEL’s funds were routed back to itself, according to Sebi 

On June 19, the counsel for Zee Entertainment said the market regulator had no evidence beyond the bank statements to prove the allegations of round-tripping of funds, hence, it cannot pass an ex-parte order.

On June 15, the SAT refused to grant an interim order in Goenka's favour and directed the marker regulator to file its response to the plea in 48 hours.

Also Read: Legal experts divided over SEBI action on ZEEL promoters

SEBI had, in an interim order, on June 12, stated that Subhash Chandra and Goenka had allegedly "abused their positions" for personal financial gains. It noted that the Mumbai-based media house had faked the recovery of loans to cover for private financing deals by its founder Subhash Chandra.

The regulator further alleged that the duo engaged in the alienation of assets belonging to Zee Entertainment and other listed companies of the Essel Group, with the aim of benefiting their associate entities.

Meanwhile, the National Company Law Tribunal (NCLT) will hear the Zee-Sony merger case at 2.30 pm on July 10. The NCLT bench led by judicial member HV Subba Rao, and a technical member, Madhu Sinha, is hearing the matter.