Zee Entertainment and CEO Punit Goenka challenge a SEBI order banning them from the securities market over allegations of fraudulent land security arrangements and undisclosed related-party loans, with a tribunal hearing scheduled for August 12.
Zee Entertainment Enterprises and chief executive Punit Goenka have moved the Securities Appellate Tribunal for urgent relief against a recent Securities and Exchange Board of India order that bars both the company and its promoter from the securities market. Counsel for the broadcaster sought an immediate hearing on Monday after SEBI’s July 31 action, and the tribunal has listed the matter for August 12. According to Business Standard, the regulator’s order stems from allegations of fraudulent conduct linked to the use of Zee-owned land in Hyderabad as security for loans taken by four Essel Group entities. The case has become the latest flashpoint in a long-running dispute over governance and related-party dealings at the media company.
SEBI has barred Goenka from the market for 12 months and Zee for two months, while imposing fines of ₹58 lakh on Goenka and ₹30 lakh on the company. Promoter Subhash Chandra has also been barred for 12 months and fined ₹60 lakh. The order says the Hyderabad property was used to secure four loans worth ₹726 crore from Indiabulls Housing Finance, with Chandra signing a declaration and acknowledgement in December 2018 on Zee’s behalf. SEBI alleged that the arrangement benefited entities controlled by Goenka, Chandra and family members, while the borrowing entities were not disclosed as related parties and the transaction was not shown in Zee’s financial statements as a related-party arrangement.
The regulator’s findings also centre on approval procedures. According to the order, Zee did not obtain prior sign-off from its audit committee, board or shareholders before allowing the property to be used in the financing structure. That has put further pressure on a company already wrestling with regulatory scrutiny and investor uncertainty. Related proceedings have seen the tribunal previously decline to grant immediate relief in another challenge by the Zee promoters, while later setting aside a separate SEBI ban on Goenka in a different matter, illustrating how the wider legal battle has shifted over time.
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