Securities and Exchange Board of India (SEBI) asks Sahara group to refund Rs 4,843 Cr to investors, is subject to Supreme Court clearance. The order will, however, take effect only after it is considered by the Supreme Court. On May 12, the Supreme Court had asked Sebi to "expeditiously hear and decide this case."It is the biggest refund order in SEBI's two-decade history. SEBI directed to Sahara group companies to return Rs 4,843 crore collected under, their optionally fully convertible debentures (OFCDs) schemes to investors.The two companies are Sahara Commodity Services Corporation and Sahara Housing Investment Corporation.
The 99-page order passed by SEBI whole-time member KM Abraham recently held Sahara group promoter Subrata Roy Sahara and three directors of the companies — Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary —jointly and severally liable for the refund.
Sebi also asked the Sahara group to pay an interest of 15 % per year from the date of receipt of money till the refund.to the satisfaction of the regulator.".
Sahara Commodity (earlier known as Sahara India Real Estate Corp) and Sahara Housing started raising money by issuing OFCDs in March 2008 and September 2009, respectively. According to the balance sheet of the Sahara group, it had raised about Rs 4,843 crore in June 2009.
SEBI, while going through a prospectus filed by another group firm, Sahara Prime City, for an IPO (Initial Public Offer), found that this money-raising through OFCDs violated its public issue norms. It banned these entities from raising money in November 2010. Sahara challenged this interim order in the Allahabad High Court and later in the Supreme Court, which passed its order on May 12.
Source: TimesofIndia
ReplyDeleteA Sahara India statement also said that Sebi has been vindictive and malicious towards the Sahara Group and this has been apparent from the chain of events, over the last one and a half years. "Over the last many years we have been facing a lot of oppressive, restrictive, unfair and unreasonable actions from various government authorities," it said. It is definitely the prime duty of the government to go deep into the matter and do justice to us, said the statement.
It said investors are being ensured that there interest is protected. It also emphasized that the matter is still subjudice and there is no direction/ order of the Hon'ble courts against Sahara. The Sahara release claimed that in last 32 years of its operation, the Group has never acted against the law or the sprit of the law or earned even a rupee illegally. The release also went to add that "unjustified acts of various regulators, departments are now forcing us (Sahara) to come out with every detail...all names...at an appropriate time."