SEBI files caveat against Punit Goenka in Supreme Court in anticipation of appeal against SAT order

SEBI had, in an interim order, on June 12, stated that Subhash Chandra and Goenka had allegedly "abused their positions" for personal financial gains.

The Securities and Exchange Board of India (SEBI) on July 12 filed a caveat against Zee Entertainment Enterprise Limited's chief executive officer Punit Goenka in the Supreme Court, in anticipation of an appeal against the Securities Appellate Tribunal (SAT) that refused to stay its order barring him from holding key management positions in any listed company.

A caveat is a pleading filed by a party to a litigation in the lower court, informing the court that the opposing party, who has not succeeded in the lower court may file a case against them. The court is to hear both sides before passing any order in case a caveat is filed.

On July 10, SAT held that it would not interfere with SEBI's order that barred Goenka and chairman emeritus Subash Chandra from holding key management positions in any listed company.

The appellate tribunal had reserved the case for orders on June 27 after hearing both SEBI and Goenka at length.

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 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 reserved its order in the Zee-Sony merger case on July 10.