New Delhi (13/03/2023): Essel Group Chairman Subhash Chandra and Zed Entertainment Enterprises (ZEEL) MD & CEO Punit Goenka have filed an appeal with the Securities Appellate Tribunal (SAT) against the Securities & Exchange Board of India (Sebi) with respect to their judgement that prohibits them from holding senior managerial roles in their listed firms.
According to Reuters, Chandra and Goenka have filed an appeal against the market regulator’s judgement based on the principle of natural justice, and SAT has scheduled a hearing for June 15.
In a recent order, Sebi barred Chandra and Goenka from serving as directors or holding any Key Management Roles in any listed company or its subsidiaries till further notice.
Sebi found that Subhash Chandra and Punit Goenka syphoned out funds from their listed business ZEEL for their own gain.
Sebi said, “The Noticees alienated the assets of ZEEL and other listed companies of Essel Group for the benefit of Associate Entities, which are owned and controlled by them. The siphoning of funds appears to be a well-planned scheme since, in some instances, the layering of transactions involved using as many as 13 entities as pass through entities within a short period of two days only.”
The associate entity mentioned here is Shirpur Gold Refinery.
Sebi gave both Chandra and Goenka 21 days to file their responses or objections in the case. It also requested that ZEEL present this directive to its board of directors within 7 days of receipt.
In a statement, Zed Chairman R Gopalan stated that the business’s board is examining the SEBI judgement and that the company is seeking “appropriate” legal guidance before making its next action.
The ZEEL share price fell more than 6% in early trade on Tuesday as it posed concerns for a potential delay in the merger with Sony following SEBI’s directive, as Goenka is set to become the merged entity’s managing director and chief executive.
