The Securities Appellate Tribunal (SAT) has postponed the hearing of Essel Group Chairman Subhash Chandra and Zee Entertainment Enterprises CEO Punit Goenka’s appeal to 26 June. The two had filed a plea to set aside the Sebi order, which barred them from holding any directorial or managerial position for a year. The regulator had taken action against the duo for siphoning off funds from the listed entity for their personal gain.
According to media reports, Goenka’s lawyer said that the petitioners have appealed against an ex-parte order, as the regulator has not reached a conclusion, despite calling the order curious.
The postponement of the hearing has left investors and stakeholders of the company in a state of uncertainty regarding the future of the company’s leadership. The Zee Group has been going through a turbulent phase, with concerns over debt repayment and the possibility of a hostile takeover by global media giants.
The Sebi order had come as a surprise to the market and sent shockwaves through the industry. The regulatory body has been cracking down on corporate irregularities, as evident from the recent case of IL&FS.
This is not the first time that Chandra and Goenka have come under regulatory scrutiny. In 2019, they were accused of defaulting on loans taken from mutual funds, leading to panic among investors and a sharp fall in the company’s share prices.
The Zee Group has been an integral part of India’s media industry, and any negative development involving the company is likely to have a ripple effect on the industry as a whole.
Investors and industry experts are hoping that the SAT hearing will provide clarity on the future of the company and its leadership. However, with the uncertainty surrounding the case, it’s likely to be a long-drawn-out legal battle, adding to the woes of the already struggling media giant.
