SAT reserves order to grant interim relief to Subhash Chandra in SEBI case

The Securities Appellate Tribunal (SAT) has reserved its order to grant interim relief to chairman emeritus of Zee Entertainment EnterprisesSubhash Chandra in Securities and Exchange Board of India (SEBI) case on Tuesday.

The focus of Tuesday’s hearing at SAT was whether any listed entity should be allowed to operate under Chandra's leadership.

Chandra's counsel, Shyam Mehta argued, “The interim order passed by SEBI was not on the basis of the LoC, so the benefits of the 30th October order by SAT should apply to the Appellant.”

On October 30, SAT reversed SEBI’s ban prohibiting Zee Entertainment's MD and CEO, Punit Goenka, from holding any managerial positions in listed companies for a year.

Also read: SAT reverses SEBI's ban on Punit Goenka from boardrooms

“The SAT order itself said that the matter is based on presumptions. The foundational fact of fund transfers was not established. The LoC was not the foundational fact. It was issued in 2019, it cant be the basis of an order in 2023,” Mehta argued.

“There is nothing to show that I am in positive control of the companies.The order by SAT cannot be utilised at the final stage, but we are at the prima facie stage and we are entitled to use this order,” he added.

Chandra’s counsel also proposed Chandra agreeing not to serve on the board of any of the companies, provided the order is stayed to prevent prejudice to SEBI and maintain the status quo.

The chairman emeritus of Zee Entertainment Enterprises, had challenged the confirmatory order issued by SEBI last year, which banned him from holding directorships in any listed entity over allegations of funds siphoning. During the previous hearing on March 14, SEBI informed SAT that Chandra, the Chairman of the Essel Group, had concealed crucial details in the alleged fund diversion case involving Zee Entertainment Enterprises.