Zee Entertainment Enterprises’ board has replaced MD and CEO Punit Goenka with an interim committee of senior executives to ensure smooth operations, the media and entertainment firm declared on July 17.
This is over a month after the Securities and Exchange Board of India (SEBI) passed an interim order on June 12 that bars Zee Entertainment Enterprises MD and CEO Punit Goenka and Essel Group chairman Subhash Chandra from holding any key managerial position in any listed company. Though the firm challenged the SEBI order, the Securities Appellate Tribunal (SAT) has refused to stay it.
According to reports, this decision was made during a board meeting held last week, aiming to ensure the seamless operation of the company. The interim committee will operate under the supervision of the board and will seek guidance from it regarding all company-related matters.
Since April, a series of developments have unfolded in the fraud case surrounding Shirpur Refinery and its connection to the Goenkas.
On June 12, SEBI issued an interim order, barring Subhash Chandra and Punit Goenka from key positions in any listed company. This order was a result of the ongoing investigation into the role of Zee group entities in the diversion of funds from Shirpur Refinery. Subsequently, Subhash Chandra and Punit Goenka challenged the SEBI order at the SAT, seeking relief.
On the other hand, over the past two months, the NCLT has been closely examining the legality and feasibility of the proposed merger between Zee Entertainment Enterprises and Sony Pictures Networks India, as well as its impact on the industry and stakeholders.