The National Company Law Appellate Tribunal (NCLAT) on May 26 set aside the order of the National Company Law Tribunal, Bombay, directing stock exchanges to reasses their approvals granted for the merger of Zee Entertainment Enterprises Ltd. with Culver Max Entertainment (earlier known as Sony Pictures Networks India). Without going into the merits of the matter, the NCLAT set aside the order passed by the NCLT on the ground of violation of principles of natural justice. It remitted the matter back to the NCLT for it to examine the same after hearing Zee’s side of the argument.
When the Zee-Sony merger proceedings were in progress at the NCLT-Bombay, the BSE and the NSE brought to the NCLAT’s attention, SEBI’s show cause notice to Shirpur Gold Refinery, part of the Essel Group (which is the promoter of Zee), alleging diversion of funds and violations of regulatory provisions. The stock exchanges also placed before the Tribunal, SEBI’s April 25, 2023 order on Shirpur, that banned certain individuals, including former chairman Amit Goenka, the younger son of Essel Goup chief Subhash Chandra, from selling or disposing of their shareholdings.
The two exchanges had already given their no-objection certificates to the merger.