In an interim order passed on Monday, SEBI barred Subhash Chandra and his son, Zee Entertainment Enterprises Limited CEO Punit Goenka, from holding directorial or key managerial positions in any listed company or its subsidiaries.
The market regulator found that Chandra and Goenka had abused their position as director or key managerial position of a listed company by “siphoning off funds for their own benefit.” It also said that while the promoter family only holds 3.99 percent shares in ZEEL, Chandra and Goenka continue “to be at the helm of affairs at ZEEL.”
The SEBI order further said that the siphoning of funds appeared to be a “well-planned scheme” since, in some instances, the layering of transactions involved using as many as 13 entities as pass through entities within a short period of two days only.
On June 13, Reuters reported that Chandra and Goenka moved the Securities Appellate Tribunal against the SEBI order. The matter will be heard on June 15.
This SEBI order is only the latest in a series of developments over the last few years that has gone against Chandra. One of India's only media moguls, Chandra has spent the last few years repaying debts. But how did he get here?
Read this story in Newslaundry about Chandra’s collapsing house of cards.
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