Senior Counsel Abhishek Manu Singhvi, advocating for Punit Goenka, pressed several key defenses during the August 30th’s SAT (Securities Appellate Tribunal) hearing. His arguments centered on the premise that Goenka’s reinstatement would not prejudice public interest or the merged entity’s operations.
Singhvi contended that Goenka, who has held the directorship since 2010, would not jeopardize public interest as the merged entity operates under Sony’s control.
He challenged the extensive 8-month wait for SEBI’s (Securities & Exchange Board of India) final order is unfair and highlighted the absence of an adjudicatory basis for SEBI’s decision.
Justice Tarun Agarwala, leading the bench also didn’t agree with the impugned order. “There is public interest involved. If the public says that he (Punit Goenka) should be the director, then it does have a bearing.”
Arguing about the merged entity and its leadership, Singhvi emphasized on the robust composition of the merged company’s board with nine directors.
He also underscored the legitimacy of transactions between ZEEL (Zee Entertainment Enterprises Limited) and LEEPL (Living Entertainment Enterprises Private Limited), which he argued were not recurring.
Goenka’s influence was confined to ZEEL, and he had no connections with other companies as a Key Managerial Person (KMP) or director, Singhvi said in his arguments.
Experts agree with Singhvi’s arguments. Piyush Tiwari, Associate at TAS Law said, “In August, SEBI issued an order that prohibited Punit Goenka from assuming any directorial or significant managerial roles within both the company and other organizations. This action was directed towards Punit Goenka, who is associated with ZEEL. This directive from SEBI appears unjust. ZEEL, being a publicly listed company, operates under the governance of its Board of Directors. Therefore, the individual decision of a single Key Managerial Personnel is unlikely to significantly impact overall decisions or public interest.”
On Wednesday, SAT instructed SEBI to submit its response by September 4 in response to an appeal lodged by Goenka. The tribunal has scheduled a hearing for the case on September 8.