On Monday, the Securities and Exchange Board of India (SEBI) started the investigation into the fund embezzlement against Essel Group (Chairman) Subhash Chandra, and Zee Entertainment Enterprises Limited (Chief Executive Officer) Punit Goenka, which should be completed within 8 months. SEBI Chairperson and Whole Time Member Madhabi Puri Buch passed the order. She found there is prima facie evidence against Chandra and Goenka as they were involved in the execution of a scheme by which the ZEEL family and got benefited at the cost of public funds.
The Whole Time Member passed an interim order barring Chandra and Goenka from holding Key Managerial Positions in any of the listed companies. Goenka and Chandra challenged the order before the Securities Appellate Tribunal which was dismissed. The SAT directed SEBI to appoint another Whole Time Member to hear the appeal which was challenging the allegations. It was held that Chandra and Goenka will not be allowed to hold directorial positions till the completion of the investigation is done.
The order clarified that they both cannot hold any Key Managerial Position in any of the companies which were formed pursuant to a merger or amalgamation involving the companies. The Goenka is restrained from becoming the Managing Director of the company.
NAME – ABHIPRA AGARWAL, COLLEGE – CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES, GGSIPU, AN INTERN UNDER LEGAL VIDHIYA
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