On March 4, when Subrata Roy was arrested and produced before the Supreme Court (SC), the group offered to produce a bank guarantee of Rs 22,500 crore in full settlement. But on Friday, when Sahara proposed paying an instalment of Rs 17,400 crore, the Securities and Exchange Board of India (Sebi) said dues were well over Rs 37,000 crore. Where does this number come from?
Sebi lawyers pointed out an August 2012 order, where the SC bench said "Sahara would refund the amounts collected through red herring prospectuses dated 13.3.2008 and 16.10.2009 along with interest @15 per cent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment, within three months from today". Here are some rough calculations.
The last subscription, according to Sahara, was April 13, 2011. The amount it raised on this date was Rs 25,781.37 crore, according to Sahara's affidavit. Simple interest at 15 per cent amounts to Rs 3,867.20 crore a year. For two years and eleven months between April 2011 and March, it adds to Rs 11,279.35 crore.
Thus, the total payable by Sahara is at least Rs 37,060.72 crore because the group will need to pay more interest to subscribers who signed up before April 13, 2011.
Text: N Sundaresha Subramanian, Business Standard
Image Courtesy: Reuters