Punit Goenka, the former chief of Zee Entertainment Enterprises Ltd, on Friday, moved the Securities Appellate Tribunal (SAT) seeking a stay on the Securities and Exchange Board of India's (SEBI) order barring him from holding key positions within four Zee group firms and in the merged entity of ZEEL and Sony Pictures Networks India.

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The SAT will hear the matter next week on August 30.

The SEBI order has alleged that Goenka and his father Subhash Chandra, former chairman of Zee Entertainment Enterprises Ltd (ZEEL), abused their roles as directors and Key Managerial Personnel (KMPs) of a listed company by siphoning off funds for their own benefit.

While the Zee Group has declined to comment on CNBC-TV18's query, sources say the duo may seek KMP positions until SEBI completes its probe into their merger. Goenka is likely to question how can he be kept out of office until the probe is completed, which SEBI said could take eight months.

Notably, Chandra has not moved the SAT.

Goenka's move to challenge SEBI's confirmatory order comes in response to their decision made on August 14, wherein they prohibited the duo from holding positions as directors or KMPs in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions from the regulator.

KMPs include several high-level corporate roles such as CEO, Managing Director, Company Secretary, Whole-time Director and CFO.

The focus of Goenka's challenge includes his restriction from becoming the managing director of the merged entity, a deal that is yet to be completed.

SEBI Chairperson Madhabi Puri Buch, while confirming the order, stressed that the investigation into the alleged fund diversion case "shall be completed in a time-bound manner and in any event, within a period of eight months".

It's worth noting that an interim order passed in June had initially barred Chandra and Goenka from directorial or KMP roles in any listed company. This directive has now been modified. The two individuals had contested the interim order before SAT, which had previously rejected their pleas.

Adding to the complexity of the situation, the National Company Law Tribunal (NCLT) approved the merger of ZEEL and Culver Max Entertainment (operating as Sony Pictures Networks India) on August 10.

(Edited by : Keshav Singh Chundawat)

First Published:Aug 25, 2023 11:54 PM IST