SAT to hear ZEEL's plea challenging SEBI's interim order on June 26

The Securities Appellate Tribunal (SAT) on Monday said it will continue the hearing of Zee Entertainment Enterprises' plea, challenging market regulator Sebi's interim order, on June 26.

The plea was filed by Zee Entertainment Enterprises Chairman Emeritus Subhash Chandra and managing director and CEO Punit Goenka.

On Friday, 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 or allegedly siphoning off funds of the media firm.

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

Meanwhile, the National Company Law Tribunal (NCLT) hearing on the potential merger of ZEEL with Sony Pictures Networks India is also on June 26.

In his argument, the counsel representing Zee Entertainment Enterprises said that 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 had 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 affidavit to SAT.

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