Securities Appellate Tribunal (SAT) on Monday refused to grant interim stay on SEBI's order against Punit Goenka and Subhash Chandra. SAT has asked Goenka and Chandra to file reply to Securities and Exchange Board of India (SEBI) within two weeks.
SAT on June 27 had reserved ordered in the Zee Entertainment Enterprises MD and CEO Punit Goenka vs Sebi Case.
Prior to this hearing, SAT refused to give interim relief to Goenka and Essel Group chairman Subash Chandra after the market regulator barred them from holding any key managerial positions in any listed company for allegedly siphoning off funds of the media firm.
After this Goenka and Chandra challenged the Sebi order at SAT.
Zee counsel claim no evidence
The counsel representing Zee Entertainment Enterprises on June 19 said that Sebi had no evidence other than the bank statements to prove the allegations of round-tripping of funds based on which Sebi cannot pass an ex-parte order. This is why the counsel wanted to stay the order by Sebi.
Sebi had restrained Chandra and Goenka from holding any managerial or directorship position in listed entities on account of alleged fund diversion.
Sebi had earlier alleged that Chandra and Goenka have diverted public funds to private entities in its response to SAT. In its affidavit SEBI said, "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 those persons."