SAT refuses to give interim relief to Zee's Punit Goenka in SEBI case, next hearing on Sep 8

The Securities Appellate Tribunal (SAT) has refused to provide interim relief to former Zee Entertainment CEO Punit Goenka in a SEBI case, ET NOW reported on Wednesday. The tribunal has given time to SEBI till September 4 to file a reply on the matter. The next hearing will take place on September 8.

In June this year, the market regulator banned Essel Group Chairman Subhash Chandra and then Zee Entertainment Enterprises (ZEEL) CEO Punit Goenka from holding any directorial or key managerial position in listed companies or their subsidiaries. The move came after the regulator found that Chandra and Goenka abused their position as directors/KMPs of a listed company by siphoning off funds for their own benefit.
 
However, earlier this month, the market regulator passed another order and barred Goenka and Chandra from the boardrooms of four Zee group companies, including Zee Entertainment Enterprises Ltd. The other three Zee group companies include - Zee Media Corporation, Zee Media Corp and Zee Aakash News.

According to the regulator, Chandra and Goenka cannot be directors in any entity that is formed after the merger. Thereby impacting Goenka's directorship post-merger of Zee and Sony. In the order, SEBI chairperson Madhabi Puri Buch said that Goenka's conduct as Managing Director and Chief Executive Officer of ZEEL was found to be in violation of norms to prevent fraud.

"His actions were in direct conflict with the interests of 96 per cent public shareholders of ZEEL, necessitating imposition of temporary restraint on him," said Buch.

Goenka moved the tribunal against the order barring him from holding key positions in four Zee group firms and in the merged entity of ZEEL and Sony.

(With inputs from Reuters)