Punit Goenka Approaches SAT Against SEBI Order Barring Him From Holding Key Positions

The case pertains to the SEBI interim order in June, which said that Zee CEO Goenka and Chairman Subhash Chandra allegedly "abused their positions" for personal financial gains.

On August 15, SEBI's confirmatory order restrained the duo from holding the post of director or KMP in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India. ( Image Source :Getty )

Punit Goenka, former CEO of Zee Entertainment Enterprises Ltd (ZEEL), on Friday moved to the Securities Appellate Tribunal (SAT) against the SEBI order barring him from holding key managerial positions (KMP) in Zee and other firms, reported PTI. The appellate tribunal has listed the matter for hearing on August 30. 

The case pertains to the SEBI interim order in June, which said that Goenka and Chairman Subhash Chandra allegedly "abused their positions" for personal financial gains. It noted that the Mumbai-based media house had faked the recovery of loans to cover private financing deals by its founder Subhash Chandra. The market regulator imposed a year ban on both for holding any key management positions in any listed firm. The duo had approached the SAT on this earlier, however, the appellant tribunal rejected the appeal. 

On August 15, SEBI's confirmatory order restrained the duo from holding the post of director or KMP in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions. As per a CNBC TV18 report,  only Goenka has moved to SAT and not Chandra. He is likely to question SEBI keeping him out of office during the duration of the probe.

SEBI Chairperson Madhabi Puri Buch has said that the regulatory body's investigation will be concluded in eight months.

On August 10, the National Company Law Tribunal (NCLT) approved the merger of ZEEL and Culver Max Entertainment, previously known as Sony Pictures Networks India. Back in December 2021, Zee Entertainment and Sony Pictures entered into an agreement to amalgamate their operations.

Following this, they pursued the tribunal's endorsement for the merger, having secured requisite authorisations from entities like the National Stock Exchange (NSE), and Bombay Stock Exchange (BSE), as well as regulatory bodies including the Competition Commission of India (CCI) and SEBI.

This merger is set to make a media conglomerate valued at $10 billion, encompassing a collective portfolio of over 70 television channels, two video streaming platforms — Zee5 and SonyLiv — along with two film studios — Zee Studios and Sony Pictures Films India.