‘Zee’s Chandra had suppressed facts’
The Securities and Exchange Board of India (Sebi) has told the Securities Appellate Tribunal (SAT) that Zee’s Subhash Chandra suppressed facts in a case that alleges diversion of funds.
Senior counsel Darius Khambata told the tribunal that Chandra had approached the Bombay High Court (HC) on 5 March, days before he made his arguments in the SAT on 8 March. He said Chandra asked the court to declare Sebi’s investigation ‘illegal and void’ owing to bias and conflicts of interest.
“A deliberate suppression of the most material fact and a false impression has been sought to be made by this appellant while seeking interim relief,” Khambata said. “This is a shocking state of affairs and conduct. How can any litigant think he can play fast and loose with the tribunal? [Saying] one thing here and [doing] exactly opposite thing. On these grounds alone, any interim order should be denied,” he added.
In his plea before the HC, Chandra said the summons issued by Sebi in an “unprecedented” manner contained allegations that indicated they had already been proved conclusively. “The nature of the summons is the same as an ex-parte interim order for justice [though] it is being arranged at the stage of investigation. From a fair reading of the summons, it is apparent that Sebi has predetermined the petitioner as guilty at the investigation stage, and without due process and the principles of natural justice, the ongoing investigation is nothing but a sham and a formality,” Chandra’s petition read.
Khambata had previously told the court that summons were issued to Chandra in January and that he was not cooperating with Sebi despite receiving several such summons.
Chandra had filed his application in the SAT after Sebi passed an order in August 2023 barring him from taking on leadership roles in his company and related entities. He is expected to make his concluding arguments on 19 March.
In the matter, Chandra has appealed to the SAT against Sebi’s confirmatory order of 14 August. The order passed by Sebi chief Madhabi Puri Buch restrained Chandra and his son Punit Goenka from holding key directorships in a listed entity in connection with an alleged fund diversion case.