• Sat. Jun 22nd, 2024

SAT Reserves Order in Punit Goenka’s Plea Against SEBI: A Closer Look at the Legal Battle

ByNishat Manzar

Sep 27, 2023


In a significant development in the ongoing legal battle between Punit Goenka, the former chief of Zee Entertainment Enterprises Limited (ZEEL), and the Securities and Exchange Board of India (Sebi), the Securities Appellate Tribunal (SAT) recently reserved its order. This move follows Goenka’s plea challenging Sebi’s confirmatory order, which restrained him and his father, Subhash Chandra Goenka, from holding key managerial positions in any listed entities. The dispute arose from allegations of fund diversion by the Goenkas, which had far-reaching implications, including a major hurdle in Zee’s proposed merger with Sony Pictures. Let’s delve into the details of this legal saga.

The Background:

The conflict began when Sebi issued an order on June 12, imposing restrictions on the Goenka father-son duo due to their alleged involvement in a fund diversion case. This order had immediate repercussions, particularly for Zee’s ambitious merger plans with Sony Pictures, known as Culver Max Entertainment. One of the crucial conditions for the merger was Punit Goenka’s leadership role in the combined entity for a five-year term.

Punit Goenka’s Defense:

In the recent proceedings at SAT, Punit Goenka’s legal counsel, Abhishek Manu Singhvi, put forth a compelling argument. Singhvi contended that Punit Goenka had no direct control over other Essel Group companies, and therefore, the decisions made by these companies should not result in punitive actions against him, such as barring him from holding a leadership position.

Furthermore, Singhvi emphasized that if Sebi’s order was not overturned, it would have significant consequences. He pointed out that Goenka’s alleged involvement in the fund diversion case was based on conjecture, presumption, and hypotheses right from the inception of the investigation. This suggests that the case against Goenka may lack substantial evidence.

SAT’s Decision: Following extensive hearings involving arguments from both sides, SAT, led by Justice Tarun Agarwala, reserved its verdict. The tribunal also stipulated that any written submissions should be submitted within a week.

Intriguingly, after the matter was initially remanded to Sebi by SAT, the market regulator once again issued a confirmatory order in August, reaffirming its decision to bar Goenka from holding directorship in Zee group entities. Concurrently, Sebi directed its officials to conclude the investigation within eight months.


The legal battle between Punit Goenka and Sebi has far-reaching implications for the media and entertainment industry, particularly the proposed merger between Zee and Sony Pictures. As the SAT reserves its order, the industry watches closely, anticipating the outcome that could potentially shape the future of key players in this sector. The argument put forth by Goenka’s legal team regarding his lack of control over other Essel Group companies and the absence of concrete evidence against him adds an intriguing dimension to this ongoing legal drama.