The Securities Appellate Tribunal (SAT) on June 27 reserved its order after hearing Zee Entertainment Enterprises MD and CEO Punit Goenka’s plea challenging the SEBI interim order that bars him and Subhash Chandra from holding the position of a director or key managerial personnel in any listed company.
SEBI took action against Essel Group chairman Subhash Chandra and Goenka, alleging that promoters created a façade through sham entries to misrepresent investors and the regulator about the repayment of Rs 200 crore to ZEEL by seven related parties.
As per Sebi, 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.
In response to the this on the hearing on June 19 the counsel appearing on behalf of ZEE said that SEBI has no evidence beyond bank statements to prove allegations of round-tripping of funds, cannot pass ex parte order.
SEBI directed Subhash Chandra and Punit Goenka to immediately cease holding positions as directors or Key Managerial Personnel (KMPs) in any listed company or its subsidiaries until further notice.
The regulator, in an interim order, on June 12, stated that Subhash Chandra and Punit Goenka have allegedly abused their positions for personal financial gain.
SEBI alleged that Subhash Chandra and Punit Goenka have engaged in the alienation of assets belonging to ZEEL (Zee Entertainment Enterprises Ltd.), and other listed companies of the Essel Group, with the aim of benefiting their Associate Entities.
(Will be updated)
First Published: Jun 27, 2023 2:17 PM IST
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