BackSAT reserves order in Punit Goenka's plea against Sebi
While defending Goenka, senior counsel Manu Singhvi argued that Punit Goenka did not have any control over other Essel Group companies, and the decisions taken by other companies cannot result in an order which penalises Goenka
PremiumMumbai: The Securities Appellate Tribunal (SAT) on Wednesday reserved its order in the matter pertaining to Zee’s former chief Punit Goenka’s plea challenging Sebi’s confirmatory order.
A bench led by Justice Tarun Agarwala after hearing both parties including Goenka and Sebi, reserved his verdict and held that written submissions, if any, should be submitted within a week.
Punit Goenka and his father Subhash Chandra Goenka have been locked in a legal tussle with Sebi after the regulator on 12 June passed an order restraining the father-son duo from holding any key managerial positions in any listed entities. The two were allegedly involved in a fund diversion case, according to Sebi.
This led to creating a significant hurdle in Zee’s proposed merger with Sony Pictures (Culver Max Entertainment), which is supposedly one of the biggest mergers in the media and entertainment space. One of the clauses of the merger was that Goenka was to head the merged entity for a period of five years.
On Wednesday, while defending Goenka, senior counsel Abhishek Manu Singhvi argued that Punit Goenka did not have any control over other Essel Group companies. The decisions taken by other companies cannot result in an order which penalises Goenka to be barred from being on the chair of the company.
“If the order is not set aside, there will be huge repercussions", the senior counsel pointed out. Goenka’s involvement is merely on conjunctures, presumptions and hypotheses right from the start of the investigation", the senior counsel argued.
After the SAT remanded the matter to Sebi, the market regulator in August yet again issued a confirmatory order barring Goenka from holding directorship in Zee group entities. While doing so it directed Sebi officials to conclude its investigation into the matter in eight months.
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