The Securities Appellate Tribunal has refused to give interim relief to Zee Entertainment's former chief Punit Goenka, in SEBI case
The Securities Appellate Tribunal (SAT) today denied an interim relief to Punit Goenka, former chief of Zee Entertainment Enterprises Ltd, in SEBI case. It has asked the markets regulator to file a reply on the matter till September 4, 2023. The next hearing has been scheduled for September 8, 2023.
Goenka had moved the SAT against an order from SEBI, which barred him from holding key positions in four Zee Group firms, and in the merged entity of ZEEL and Sony Pictures Networks India. As per the order, Goenka and his father Subhash Chandra, former chairman of ZEEL, allegedly abused their position as directors or Key Managerial Personnel (KMPs) of a listed company by siphoning off funds for their own benefit, according to a report by The Economic Times.
Goenka had challenged the order that was passed on August 14, whereby the regulator restrained the duo from holding the post of director or KMP in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions. Besides, Goenka was restrained from becoming the managing director of the merged entity.
The deal is yet to be complete.
The appellate tribunal has listed the matter for hearing on August 30, an update with the SAT showed.
Passing the confirmatory order in connection with the case of alleged siphoning off funds of ZEEL, SEBI Chairperson Madhabi Puri Buch had said that investigation by the watchdog in the case "shall be completed in a time-bound manner and in any event, within a period of eight months".
In the interim order passed in June this year, Chandra and Goenka were barred from becoming a director or KMP in any listed company but that direction has been modified now.
The interim order was challenged by the two individuals before SAT, which had rejected their pleas.
On August 10, the National Company Law Tribunal (NCLT) approved the merger of ZEEL and Culver Max Entertainment, which is doing business as Sony Pictures Networks India.