SAT refuses to give interim relief to Punit Goenka, lists matter for final disposal on Sept 8

The Securities Appellate Tribunal (SAT) has refused to give interim relief to Punit Goenka, former chief of Zee Entertainment Enterprises, against a Sebi order that barred him from holding key positions in four Zee group firms and in the merged entity of ZEEL and Sony Pictures Networks India.

"After hearing the learned senior counsel for the parties at some length, we are of the opinion that the matter has to be decided finally. We, consequently, direct the respondent (Sebi) to file a reply by Monday, September 4, 2023," the bench of Presiding Officer Justice Tarun Agarwala and Technical Member Meera Swarup said in their order passed on Wednesday.

The matter will be listed for final disposal on September 8, the appellate tribunal said in its order uploaded on its website on Thursday.

Goenka moved SAT last week challenging capital markets regulator Sebi's confirmatory order passed on August 14.

In its order, Sebi restrained Goenka and his father Subhash Chandra from holding the post of director or Key Managerial Personnel (KMPs) in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions.

Goenka was also restrained from becoming the managing director of the merged entity.

The deal is yet to be complete.

The case pertains to a Sebi order alleging that Goenka and Chandra, former chairman of ZEEL, abused their position as directors or KMPs of a listed company by siphoning off funds for their own benefit.

Passing the confirmatory order in connection with the case of the alleged siphoning off funds of ZEEL, Sebi Chairperson Madhabi Puri Buch had said the investigation by the watchdog in the case "shall be completed in a time-bound manner and in any event, within a period of eight months".

In the interim order passed in June this year, Chandra and Goenka were barred from becoming a director or KMP in any listed company but that direction has been modified now. The interim order was challenged by the two individuals before SAT, which had rejected their pleas.

On August 10, the National Company Law Tribunal (NCLT) approved the merger of ZEEL and Culver Max Entertainment, which is doing business as Sony Pictures Networks India.

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