The Securities and Exchange Board of India (Sebi) has accused Zee chairman emeritus Subhash Chandra of “not cooperating” with investigators in the alleged fund diversion case being probed by the markets regulator.
The submission was made on Monday during a hearing at the Securities Appellate Tribunal (SAT), where Chandra, who is also the chairman of the Essel Group, has filed an appeal against the August 14, 2023, confirmatory order that barred him and his son Punit Goenka from holding directorships in Zee group companies.
While the tribunal had granted relief to Goenka, the managing director and chief executive officer of Zee, in the matter on October 30, 2023, Chandra’s appeal is being heard now.
Darius Khambata, the counsel arguing for Sebi, said that Chandra had continually sought more time to submit documents requested by investigators despite repeated summons. The markets regulator had last sent summons on January 12, 2024, to Chandra, the counsel said, but was yet to get a response from the latter in the matter.
On behalf of Chandra, counsel Shyam Mehta argued that none of the allegations by Sebi had been proved and that the case was causing reputational damage to him. Chandra’s counsel further said that while the Sebi confirmatory order had barred Chandra from holding positions in four Zee group firms, Chandra had actually stepped down from Zee in 2018.
The tribunal has given Sebi 10 days to reply to Chandra’s appeal.
The hearing in SAT comes at a time when the probe by the markets regulator is said to have widened. Sources in the know say that the regulator is looking at a larger set of transactions and entities as part of its ongoing probe and has summoned former directors of the company, including two erstwhile independent directors, in connection with the matter.
Last week, reports had said the amount could be 10 times more than the initially estimated Rs 200 crore in terms of alleged fund diversion at Zee.
Shares of Zee closed 1.65% down on the BSE on Monday at Rs 171.65.
Sebi, in its August 14, 2023, order had said that it would complete the probe within eight months. The regulator is expected to issue the final order by mid-April.