Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises Ltd. and former Rajya Sabha member, has secured a legal victory from the Bombay High Court. The ruling follows his challenge against summons issued by the Securities and Exchange Board of India (SEBI).
In its decision, the High Court acknowledged Chandra’s contention that the summons issued on January 12, 2024, did not adhere to SEBI Act provisions. It concurred that the summons presented predetermined and conclusive allegations, resembling a show cause notice. Consequently, the court advised Chandra that he is not required to respond to this specific summons.
Chandra also raised concerns about perceived bias within SEBI, an issue previously noted by the Securities Appellate Tribunal (SAT). SEBI, during today’s hearing, conceded to the points raised in Chandra’s petition. The court directed Chandra to provide information or documents only in response to subsequent communications from SEBI, particularly those dated February 27, 2024.
SEBI addressed the bias issue by informing the Court that future decisions concerning Chandra and Zee will be handled by an official other than whole time member Ashwani Bhatia, ensuring impartiality.
Pending the issuance of a final order, the Bombay High Court has maintained all rights and contentions open for Chandra and ZEE in this case. Further proceedings await the receipt of the court’s order.
