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In their plea, the duo claimed that natural justice principles were violated because they were not given a show cause notice before the order was made.

Subhash Chandra, chairman of the Essel Group, and Punit Goenka, CEO of Zee Entertainment Enterprises Limited (ZEEL), have filed a complaint with the Securities Appellate Tribunal (SAT) challenging the Securities and Exchange Board of India (SEBI) interim order that prohibits them from holding key managerial positions (KMP) in any listed company or its subsidiaries.

The team in their supplication guaranteed infringement of standards of regular equity, expressing that no show cause notice was given to them before the request was passed.

The appeal is likely to be heard by a coram led by Justice Tarun Agarwala on June 15. 

The SEBI order was passed after noting that Chandra and Goenka (noticees) had abused their position as directors of a listed company for siphoning off funds for their own benefit and alienated the assets of ZEEL and other listed companies of the Essel Group for the benefit of associate entities owned and controlled by them.

According to the SEBI, the siphoning off appeared to be a well-planned scheme.

Additionally, the market regulator had noted that the Annual Report’s disclosure of payments from associate entities appeared to be inaccurate.

Through fictitious entries, the noticees presented a false picture to investors and regulators, claiming that money had been returned by associates when, in fact, it was ZEEL’s own funds that had passed through multiple layers and ended up in its account.

The noticees have attempted to ride piggyback on the success of ZEEL, the flagship company of Essel Group, to bankroll the associate entities, which are owned and controlled by them,” the SEBI order had stated.

Written by – Archana chandane  intern under legal vidhiya


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