SEBI accuses Subhash Chandra of concealing details in Zee fund diversion case: Reports

On Thursday, the Securities and Exchange Board of India (Sebi) informed the Securities and Appellate Tribunal (SAT) that Subhash Chandra, the Chairman of the Essel Group, had concealed crucial details in the alleged case of fund diversion involving Zee Entertainment Enterprises.

Sebi's representative, Darius Khambata, informed SAT that Chandra lodged an appeal with SAT in late February and presented arguments on March 8. This occurred just three days after he approached the Bombay High Court on March 5, seeking to invalidate Sebi's investigation, claiming it was tainted by bias and conflicts of interest.

“Far from cooperating, he had actively taken steps to stymie and stop the investigation and not to respond to the summonses,” Business Standard quoted Khambata.

In August 2023, just days after the NCLT (National Company Law Tribunal)’s approval of the Zee-Sony merger, SEBI (Securities and Exchange Board of India) issues an order preventing Zee promoters Punit Goenka and Subhash Chandra from assuming any significant management roles within Zee companies or the newly merged entity with Sony. The investigation in the matter by SEBI shall be completed in a time-bound manner, within a period of 8 months.

As per an August 14 SEBI order, Chandra and Goenka was barred from holding the position of a director or a KMP (Key Management Personnel) in Zee Entertainment Enterprises Ltd, Zee Media Corporation Ltd, Zee Studios Ltd. (wholly owned subsidiary of Zee Entertainment Enterprises Ltd.); Zee Akaash News Pvt Ltd (wholly owned subsidiary of Zee Media Corporation Ltd.).

The proceedings at SAT are set to resume on March 19.

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