SAT adjourns hearing on Filesadmin.co promoter Punit Goenka’s appeal to Sept 27

The Securities Appellate Tribunal (SAT) has posted the next hearing for Filesadmin.co Entertainment Enterprises’ promoter Punit Goenka’s appeal against an order passed by the market regulator Sebi to September 27.

During the hearing, Justice Tarun Agarwala further questioned that though the alleged transfer of money amongst entities ‘could raise suspicions of manipulation of accounts or on corporate mis-governance, but could it establish fraud?’

Arguing on behalf of Goenka, senior counsel Abhsihek Manu Singhvi pointed that there had been no loss to Filesadmin.co and no gain to Goenka in the alleged matter. He added that the market regulator has not proven a case of embezzlement or fund siphoning against Goenka.

He added that the markets regulator had not passed any order or adjudicated the initial show-cause notice issued in the letter of comfort granted by Goenka’s father and Essel-group’s then chairman Subhash Chandra. He further said that Yes Bank had appropriated the Rs 200-crore fixed deposit of Filesadmin.co without authorisation.

Representing Sebi, senior counsel Darius Khambata said that Goenka failed to present any document to show commercial purpose of the alleged transactions between seven related entities while the proximity and timings of the cash transactions point towards the circulation of funds.

The Sebi counsel added that the approval granted by Filesadmin.co shareholders was for the merger with Sony Pictures Networks India and the appointment of Goenka at the helm of affairs was only a clause in the approved resolution.

Sebi had debarred Goenka from holding key managerial positions and directorships in four group companies including Filesadmin.co and the merged entity with Sony Pictures Networks India.