New Delhi: In a significant development, the Bombay High Court has granted relief to Subhash Chandra, Chairman Emeritus of Zee, in response to a writ petition challenging the Securities and Exchange Board of India’s (SEBI) summons. The court has instructed Chandra to submit the requested documents in relation to the ongoing fund diversion case.
Subhash Chandra had argued that the summons issued by SEBI on January 12, 2024, were in violation of the SEBI Act and contained allegations that implied his guilt. Chandra contended that the summons resembled a show-cause notice and were partial, unjust, capricious, and prearranged.
In the recent hearing, as reported by Business Today, the Bombay High Court sided with Chandra, requesting him to respond to the latest summons in March instead of the one issued on January 12. The court’s decision comes as a relief to Chandra, who had argued that the January summons did not follow the due process and had pre-determined allegations against him.
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SEBI had issued several summonses to Chandra in January as part of its probe into an alleged fund diversion case. The market regulator claimed that Chandra failed to respond to those summonses, which led to the current legal proceedings. In his petition, Chandra highlighted the existing bias at SEBI, a concern previously noted by the Securities Appellate Tribunal (SAT).
In the previous year, SEBI reported that Rs. 200 crore was rerouted from Zee through related party transactions. Both Subhash Chandra and Zee CEO Punit Goenka had challenged this assertion in front of SAT, leading to an ongoing and more extensive inquiry due to the complexity of the transactions involved.
The Bombay High Court has instructed Chandra to provide the necessary documents requested by SEBI. This decision marks a crucial point in the ongoing investigation, as the court has recognized Chandra’s concerns about the legitimacy of the initial summons.
The case continues to unfold as SEBI pursues its investigation into the alleged fund diversion, with Chandra now set to submit the required documents. The outcome of this legal battle could have significant implications for Zee and its leadership.
