SEBI moves SC; seeks Roy detention

Last Updated: Fri, Mar 15, 2013 11:33 hrs

Triggering fresh trouble for Sahara chief Subrata Roy, the Securities and Exchange Board of India (SEBI) on Friday moved the Supreme Court and demanded his detention.

The market regulator also sought the detention of two other Sahara group directors.

The Supreme Court will hear SEBI´s plea in the first week of April.

In its petition, the SEBI has reportedly sought the attachment of Roy´s passports.

Last month, the SEBI ordered a freeze on the bank accounts and assets of two Sahara firms and their top executives, including group chief Roy.

The move, in two separate orders posted on the SEBI website on Feb 13, came after Sahara failed to heed to a Supreme Court order to repay thousands of crores of rupees to investors of outlawed bonds, the market watchdog said.

Last year on Aug 31 in an order, the apex court had directed Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) to refund the money to their investors within three months with 15 per cent interest per annum.

If the unlisted companies failed to refund Rs 24,000 crore with 15 percent interest to about three crore investors, the SEBI can attach properties and freeze bank accounts of the companies, the court had ruled.

In another verdict last December, the Supreme Court had directed Sahara Group to immediately give a demand draft of Rs 5,120 crore to SEBI.

The bench headed by Chief Justice Altamas Kabir had directed it to deposit the first installment of Rs 10,000 crore by first week of January next year and the rest by first week of February.

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