SAT dismisses promoters' appeal in Zee Entertainment

The Securities and Appellate Tribunal (SAT) on Monday dismissed appeals filed by Essel group chairman Subhash Chandra and Zee Entertainment Enterprises' MD & CEO Punit Goenka against an interim order issued by the Securities and Exchange Board of India (Sebi), alleging fund diversion at the television major.

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In an interim ex-parte order on June 12, the market regulator debarred Goenka and Chandra from taking key managerial positions and directorships at listed companies due to alleged fund diversion at Zee.

The SAT bench headed by Justice Tarun Agarwala said that it did not find any reason to interfere with Sebi's order at this stage. The tribunal has directed Zee promoters to submit their responses within two weeks. "In the absence of any evidence being filed by the appellants before us, we do not find any perversity, irregularity, illegality or irrationality in passing of the impugned order," said SAT.

The tribunal also asked Sebi to fix a date for hearing within a week from the filing of replies by Goenka and Chandra. The market regulator will have to pass the appropriate orders within two weeks after giving an opportunity to be heard.