Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises, has moved the Securities Appellate Tribunal (SAT), challenging the Securities & Exchange Board of India’s (Sebi) confirmatory order issued last year that banned him from holding directorships in any listed entity.
SAT has asked Sebi to file its reply and has posted the matter for further hearing on March 8.
During the hearing on Monday, Sebi counsel Darius Khambata argued that Chandra is ‘not cooperating’ in an investigation into the alleged diversion of funds from the media company to the promoter-linked firms. “Sebi has been writing to him, giving him summons, and seeking information and documents,” argued Khambata. “We will put this on record that he (Chandra) has ‘not been cooperating,” he said.
Countering this, Chandra’s counsel, Shyam Mehta, argued that SAT has already heard the matter and passed a judgement on an appeal filed by Zee Entertainment MD & CEO Punit Goenka that applies to Chandra as well.
Mehta further argued that the Sebi order was prejudicial not only to his reputation but also to the companies with which he is associated.
Sebi passed a confirmatory order on August 14, 2023, banning Chandra and his son Goenka from holding directorships or top-level positions in any listed company. The same month, Goenka had moved the SAT and secured a stay order against the Sebi order in October 2023. While granting relief to Goenka, the appeals tribunal allowed Sebi to continue the investigation against him. It had also asked Goenka to cooperate in the Sebi probe.
It is pertinent to note that Chandra had decided not to challenge the SAT verdict last year.
