The Securities and Exchange Board of India (Sebi) has accused Zee chairman emeritus Subhash Chandra of “suppressing material facts” in the alleged fund diversion case being probed by the markets regulator.
The submission was made on Thursday 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, managing director and chief executive officer of Zee, in October last year, Chandra’s appeal is being heard now.
This is the second time that Sebi has pointed to non-cooperation by Chandra in the ongoing investigation by the regulator. On February 26, Sebi had said that Chandra had continually sought more time to submit documents requested by investigators despite repeated summons.
“Far from cooperating, he (Chandra) has actively taken steps to stymie and stop the investigation and not respond to the summons,” Sebi’s counsel Darius Khambata said on Thursday.
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.
Chandra has also approached the Bombay High Court for relief in the matter, arguing that the ongoing investigation by Sebi is a “sham”.
“From a fair reading of the summons, it is apparent that Respondent No. 1 (Sebi) has already predetermined the petitioner as guilty at the investigation stage itself. This is without following due process and principles of natural justice,” Chandra’s appeal in the Bombay High Court said.
The arguments in the SAT will continue till March 19.