Sebi had passed the order after it found that Goenka, along with Subhash Chandra — a promoter of the company — had diverted funds from it.Sebi had also alleged that funds fromZee were routed through several group companies to itself again, which were bogus transactions.
In the 94-page order, SAT also directed Goenka to cooperate with Sebi’s probe against him. The order to ban him was an interim order which was ex parte in nature when initially passed, but was later confirmed after giving an opportunity to Goenka to present his side of the case.
“The restraint order passed by the respondent (Sebi) pursuant to the ad interim order and the confirmatory order restraining the appellant to function as a (MD) and is set aside,” the order said.
“The appellant shall, however, cooperate in investigation. In the event any material comes out against the appellant during the course of the investigation, appropriate proceeds can be adopted by Sebi,” it said. The SAT order opens up the possibility of putting the merger of Zee and Sony Pictures Networks India back on track. Zee shares on the BSE rose 2.5% intraday but closed 0.5% up at Rs 250.