The Securities Appellate Tribunal (SAT) will continue to hear on the Punit Goenka vs SEBI matter on June 26.
SAT bench led by Justice Tarun Agrawala on June 16 in an oral order posted that the final decision on the matter will be taken on Monday, June 19. This comes after the market regulator barred Goenka who serves as the Managing Director and Chief Executive of Zee Entertainment and Essel Group patriarch Subash Chandra to hold any key managerial positions in the listed companies on June 12.
SEBI passed the order on the grounds that both were part of the misappropriation of funds and failed to keep the investors the same.
Janak Dwarakadas, senior counsel representing Punit Goenka in the case termed the SEBI order as “Sham” in the previous hearing and highlighted the absence of a show cause notice and violation of natural justice.
SEBI in an 197 page reply to SAT on June 17 has explained the background and need for an urgent action against Zee Entertainment.
SEBI’s statement read, “We have a situation before us where the chairman emeritus and the MD and CEO of this large listed company are involved in a myriad of different schemes and transactions through which vast amounts of public money belonging to listed companies are diverted to private entities owned and controlled by these persons. The appellant’s conduct is telling in this regard. Not only have there been violations but also the issuance of multiple false disclosures and submission of statements to cover up such wrongdoings.”
