SAT to hear Subhash Chandra, Punit Goenka's plea on Tuesday

The Securities Appellate Tribunal (SAT) on Monday deferred the hearing of Zee Entertainment Enterprises' plea, challenging market regulator Sebi's interim order, to June 27.

Last week, the SAT refused to give any interim relief to Essel Group chairman Subash Chandra and his son Punit Goenka after the markets regulator barred them from holding the position of a director or key managerial personnel in any listed company for allegedly siphoning off funds of the media firm.

After this, Zee Entertainment Enterprises challenged the Sebi order at SAT.

SAT is expected to hear the matter today.

On June 19, the counsel for Zee Entertainment Enterprises said the market regulator had no evidence beyond the bank statements to prove the allegations of round-tripping of funds and that Sebi cannot pass an ex-parte order.

The counsel said Zee Entertainment Enterprises wanted a stay on the Sebi order.

"All entities through which Sebi alleges round-tripping, have genuine business relations with Zee," the counsel further added.

Earlier, in its reply to SAT, Sebi had alleged that Chandra and Goenka have diverted public funds to private entities, which calls for urgent action.

"In the instant case, we have a situation before us where the Chairman Emeritus and the Managing Director 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," Sebi said in its affidavit to SAT.

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