Punit Goenka, one of the promoters of Zee Entertainment Enterprises, on Friday appealed before the Securities and Appellate Tribunal (SAT) for relief against the August 14 confirmatory order by the Securities and Exchange Board of India (Sebi) barring him from taking key managerial positions in Zee group companies as well as the merged entity with Culver Max Entertainment (formerly Sony Pictures Networks India).
SAT will hear the matter next week. Zee declined comment when contacted.
Sebi Chairperson Madhabi Puri Buch in the order said that both Chandra and Goenka should be barred from holding directorships or key managerial positions in Zee Entertainment, Zee Media Corporation, Zee Studios, Zee Akaash News and any other company formed by a merger or demerger of these entities.
Legal experts say that Goenka may argue that he can’t be kept out of office till Sebi‘s probe is completed. Last month, Zee Entertainment had said that it was forming an interim committee to run operations at the firm after Goenka and Chandra had failed to overturn the ban on them by the market regulator at SAT.
The tribunal had instead directed Sebi to provide an opportunity of hearing to Chandra and Goenka and then issue the final or confirmatory order. Following the directive, it had provided hearing to the duo and issued the confirmatory order within the stipulated time.
The market regulator in its earlier order in June 12 interim order and Aug 14 confirmatory order has alleged that Chandra and Goenka had done sham transactions to divert funds to associate entities. The diversion was to the tune of Rs 200 crore.