The Securities Appellate Tribunal (SAT) on Tuesday deferred a hearing on a petition filed by Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises, against the Securities and Exchange Board of India (SEBI) in the alleged fund diversion case.

Chandra's counsel requested more time, to which Sebi's counsel protested. Chandra's lawyers requested a later date from the tribunal, but Sebi's attorney asked the bench to accept this as the final extension, noting developments and charges made by the 73-year-old media baron. The case may now be heard later in September.

On Monday, Chandra chastised Sebi chairperson Madhabi Puri Buch and accused the regulator of wrongdoing. He claimed that in February, a guy named Manjit Singh asked him for a "price" to fix any pending matters at Sebi.

In August 2023, the Sebi prohibited Chandra and his son Punit Goenka from holding important positions in four group companies. In June 2023, the regulator accused promoters of fraudulent practices and fund diversion at Shirpur Gold Refinery, an Essel Group subsidiary. The father and son filed separate appeals, requesting relief from the SAT.

Earlier in June, the Bombay High Court asked Chandra to provide the market regulator with the papers and information it wanted, as well as to reply to the summons issued in the alleged fund diversion case. Chandra filed a High Court petition challenging Sebi's summons.

According to sources, Sebi's research has indicated that the fund diversion from Zee is substantially higher than originally believed. The regulator is in the midst of serving new show cause notices on Chandra and his son Punit Goenka in the case. Zee's promoters control less than 4% of the firm, with the remaining 96% held by the public. Zee Entertainment's shares fell by more than 3% on Tuesday.