Sebi to skip taking an action over summons issued to Zee Entertainment’s Subhash Chandra

The summons issued to Subhash Chandra of Zee Entertainment Enterprises in connection with an alleged fund diversion case was filed on Wednesday before the Bombay High Court by the Securities and Exchange Board of India (Sebi). Sebi stated that it would not take any immediate action.

Chandra had petitioned the court on March 5th, claiming that the charges in the Sebi summons were worded in a way that suggested they had already been proven beyond a reasonable doubt.

The markets watchdog had served Chandra with several summonses in January to participate in its continuing probe into the purported fund diversion matter.

“The nature of the summons is as if the same as an ex-party interim order show for justice. Yet the same is being arranged at the stage of investigation,” the petition read. “From a fair reading of the summons, it is apparent that Sebi has already predetermined the petitioner as guilty at the investigation stage itself, without following due process, principles of natural justice, ongoing investigation is nothing but a sham and a formality.”

Chandra’s senior attorney, Ravi Kadam, contended that the summons was given in order for Chandra to turn over specific papers related to a pending lawsuit. “However, numerous definitive findings were made under false pretenses that essentially amounted to a show cause notice.” stated Kadam.

The media mogul implored the court to prevent Sebi from releasing a conclusive probe report.

The directive made it clear that the inquiry was to be finished in eight months starting in August. The SAT was hearing the case when Sebi notified the tribunal that summonses had been sent out for January 12 and 27, 2024.