Relief for Subhash Chandra as Bombay HC concedes to his petition against Sebi summons

The Bombay High Court has accepted the contentions raised by Dr Subhash Chandra, Chairman Emeritus, Zee Entertainment Enterprises Ltd. and Former Member of Rajya Sabha who filed a writ petition against the summons dated 12th January 2024, issued by the Securities and Exchange Board of India (SEBI); stating that the summons did not comply with the provisions of the SEBI Act, contained pre-determined and conclusive allegations and were in the nature of a show cause notice.

Sebi had issued the summons to the Chairman Emeritus of Zee Entertainment Enterprises in an alleged fund diversions case.

In his writ petition, Dr. Subhash Chandra had also raised concerns pertaining to the prevailing bias at the market regulator’s end, which were previously observed by the Hon’ble Securities Appellate Tribunal (SAT).

In a hearing conducted today at the Hon’ble Bombay High Court, SEBI has conceded to the points raised in the writ petition.

The Court has further advised Dr. Chandra not to respond to the summons dated 12th January 2024 and has guided him to only provide any information / documents as may be available with him, sought in the subsequent communication of SEBI dated 27th March 2024.

On the point highlighted by Dr. Chandra in his writ petition pertaining to the prevailing bias at the market regulator’s end, SEBI has informed the Court that going forward, the final order will be passed by an official other than the Whole Time Member, Mr. Ashwani Bhatia for the matters pertaining to Dr. Chandra and ZEE; to ensure that there is no element of biasness. In this matter, and on the other challenges, the Court has kept all the rights and contentions of Dr. Chandra and ZEE open, and the copy of the order is awaited.