The Securities Appellate Tribunal on October 30 set aside an order of the markets regulator, SEBI, that had barred Punit Goenka, managing director and CEO of Zee Entertainment Enterprises Ltd., from holding any key managerial post in the company and any other group firms. SEBI had passed the order after it found that Goenka and his father — Subhash Chandra who is also a promoter of the company — had diverted funds from it for personal use. The order to ban him was an interim order which was ex parte in nature when initially passed, but was later confirmed after Punit presented his side of the case. SEBI had also alleged that funds from Zee were routed through several group companies to itself again, in a series of bogus transactions.
The 94-page order of the SAT said, “The restraint order passed by the respondent (SEBI) pursuant to the ad interim order and the confirmatory order restraining the appellant to function as a managing director, is set aside.” It directed Punit to cooperate with SEBI’s probe against him.
The SAT’s order opens up the possibility of putting the merger of Zee and Sony Pictures Networks India back on track.