SEBI has held Shri Subhash Chandra and Shri Punit Goenka for misusing their position as Directors/KMPs of a listed company for their own benefit. , Photo Credit: Special Arrangement
The Securities Appellate Tribunal (SAT) has refused to grant any interim relief to Essel Group Chairman Subhash Chandra and his son Punit Goenka against SEBI’s order barring them from holding the position of directors or key managerial personnel in any listed company. was barred from living.
The Appellate Tribunal has asked SEBI to file a reply within 48 hours in response to the appeal filed by Mr Chandra and Mr Goenka.
SAT has listed the matter for disposal on June 19.
“We are of the view that passing an interim order at this stage would in fact allow the appeal. Consequently, we feel that we must decide the appeals finally,” the tribunal said in its order passed on June 15.
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Markets regulator SEBI took action against Mr Chandra and Mr Goenka, MD and CEO of Zee Entertainment Enterprises Limited (ZEEL), on June 12 for allegedly siphoning off funds held by ZEEL. He then challenged the SEBI order before the SAT.
Sources said that as per his plea, no show cause notice was issued to him and principles of natural justice were not followed.
In its interim order, Sebi said Mr Chandra and Mr Goenka had alienated the assets of ZEEL and other listed companies of Essel Group for the benefit of associate entities, which were owned and controlled by them. The case pertains to Mr. Chandra, who was also the Chairman of ZEEL during the alleged contravention, and Mr. Goenka misappropriating funds for their own benefit by abusing their positions as Directors or Key Managerial Persons (KMPs) of a listed company Did. ,
Sebi had said that the siphoning appeared to be a well-planned scheme as, in some cases, it involved layering of transactions using thirteen pass-through entities within a short period of just two days.
The order came after SEBI conducted an examination in the wake of the resignation of two independent directors of ZEEL – Sunil Kumar and Niharika Vohra – in November 2019.
Mr Kumar and Ms Vohra had raised concerns over a number of issues, including the appropriation of some fixed deposits (FDs) of ZEEL by Yes Bank to repay loans of related entities of the Essel Group. Mr. Vohra alleged that a bank guarantee was given to a subsidiary company without approval from the board of ZEEL.