Subhash Chandra suppressed material facts: Sebi to SAT in Zee fund diversion case

Delhi: The Securities and Exchange Board of India (Sebi) has informed the Securities and Appellate Tribunal (SAT) that Essel Group Chairman Subhash Chandra suppressed material facts in the alleged case of fund diversion involving Zee Entertainment Enterprises.

According to media reports, Darius Khambata, Sebi counsel, informed SAT that Chandra filed an appeal with SAT towards the end of February. He presented arguments on March 8, just three days after he went to the Bombay High Court on March 5 and wanted the court to declare the Sebi probe as ‘illegal and void’ because of it being ‘vitiated by bias and conflict of interest’. 

Khambata said, "Far from cooperating, he had actively taken steps to stymie and stop the investigation and not to respond to the summonses." 

Sebi had earlier told the tribunal that Chandra was ‘not cooperating’ with the summons issued.

The market regulator is investigating the alleged fund diversion by Chandra and Punit Goenka, who serves as both MD and CEO of Zee. In an official order issued in August 2023, Sebi barred both of them from holding key positions in four group firms. The tribunal had granted relief to Goenka.

In an earlier hearing, counsel for Chandra said that he did not hold any key position in any firm and was ready not to take any role if the Sebi order against him was stayed. He argued that there was no urgency for the order and no allegations had been proved.