Subhash Chandra has filed a challenge against SEBI’s ban with SAT, which was confirmed on August 14, 2023, while Goenka has managed to secure a stay order.
According to ET, Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises, has lodged a challenge with the Securities Appellate Tribunal (SAT) against the Securities & Exchange Board of India’s (SEBI) confirmatory order from the previous year. This order barred him from holding directorships in any listed corporation.
The matter is set for a subsequent hearing on March 8 after SAT requested SEBI to provide its response. Darius Khambata, SEBI’s attorney, alleged during the Monday session that Chandra is not cooperating with an investigation into the alleged diversion of funds from the media company to firms linked to the promoter.
“Sebi has been writing to him, giving him summons, and seeking information and documents,” Khambata stated. “We will put this on record that he (Chandra) has ‘not been cooperating,” he added.
In response, Chandra’s lawyer, Shyam Mehta, argued that Chandra was also covered by SAT’s ruling, which had previously heard and decided on an appeal brought by Punit Goenka, MD & CEO of Zee Entertainment.
Mehta further argued that the SEBI ruling was damaging to the companies Chandra is associated with as well as to his own reputation. On August 14, 2023, SEBI issued a confirming decision barring Chandra and his son Goenka from serving as directors or holding senior positions in any listed company.
In October 2023, Goenka secured a stay order against the SEBI order and approached SAT the same month. While the appeals panel allowed SEBI to continue its probe against Goenka despite granting him relief, Goenka was also invited to cooperate with the SEBI investigation. It is noteworthy that Chandra decided last year not to appeal SAT’s decision.