 "Zee’s Chandra Accused of Corruption as Regulatory Battle Escalates Dramatically")
Subhash Chandra, the chairman emeritus of Zee Entertainment, is facing legal challenges from the Securities and Exchange Board of India (Sebi) regarding allegations of fund diversion. A recent hearing at the Securities Appellate Tribunal (SAT) was postponed, with Chandra’s legal team requesting more time amidst objections from Sebi’s counsel. Chandra has publicly criticized Sebi’s chairperson, alleging corruption involving a person who sought payment to resolve Sebi’s inquiries. In August 2023, Sebi restricted Chandra and his son Punit Goenka from key positions in certain companies due to allegations of fraudulent practices. The ongoing investigation suggests that the fund diversion discovered is much larger than initially thought, leading to additional scrutiny and potential penalties for Chandra and his son.
The ongoing legal battle involving Subhash Chandra, the chairman emeritus of Zee Entertainment Enterprises, has taken another turn as the Securities Appellate Tribunal (SAT) has adjourned a hearing related to a plea filed against the Securities and Exchange Board of India (Sebi). Chandra is facing serious allegations concerning fund diversion.
During Tuesday’s proceedings, Chandra’s lawyer requested more time to prepare, while Sebi’s lawyer opposed this request, stating that this should be the final extension given the gravity of the situation. The plea will now be heard later in September.
Chandra has also publicly criticized Sebi chairperson Madhabi Puri Buch, alleging that he was approached by an individual named Manjit Singh, who was suggested to him by a bank chairperson, to discuss resolving outstanding issues with Sebi for a fee. In the past, Sebi took significant action by barring Chandra and his son, Punit Goenka, from key positions in four group companies due to alleged fraudulent activities and fund diversion from the Essel Group’s Shirpur Gold Refinery.
Chandra and Goenka have each filed separate appeals as part of their fight against these allegations. In a related ruling, the Bombay High Court previously ordered Chandra to provide documents requested by Sebi and respond to their summons.
Recent investigations by Sebi have hinted at an even larger extent of fund diversion from Zee, leading to the resurgence of show-cause notices to both Chandra and his son. As it stands, with the promoters owning only a 4% stake in Zee, public ownership dominates at 96%. Following these latest developments, Zee Entertainment’s shares fell by over 3% on Tuesday.
This case continues to unfold, capturing the attention of investors and regulatory bodies alike.
Tags: Subhash Chandra, Zee Entertainment, Sebi, financial regulation, legal news, fund diversion, corporate governance, investments.
What is the SAT hearing about?
The SAT hearing is about Zee’s request against a decision made by Sebi regarding the diversion of funds.
Why was the hearing adjourned?
The hearing was adjourned to give more time for both sides to present their arguments and gather necessary information.
What does Zee want from the SAT?
Zee wants the SAT to reconsider Sebi’s decision and allow them to defend their case regarding the fund diversion claims.
What is Sebi’s role in this matter?
Sebi, which stands for Securities and Exchange Board of India, is responsible for regulating the securities Market and protecting investor interests, and they alleged that Zee diverted funds improperly.
How will this affect Zee and its investors?
The outcome of this hearing can impact Zee’s reputation and financial operations, which could also influence investor confidence in the company.
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