Supreme Court raps Sahara on refund

The Supreme Court on Monday rapped the Sahara group for not complying with its earlier order for refunding more than Rs 24,000 crores to about three crore investors.

The apex court said the intentions of Sahara is shaky and the company is trying to justify a conduct which is unjustifiable, media reports quoting the verdict said.

Market regulator Securities and Exchange Board of India (SEBI) in September had moved to the Supreme Court against the Sahara Group for failing to furnish details about two of its companies which were directed to refund around Rs 24,000 crore (Rs 27,000 with 15 percent interest) to their crores of investors.

In an application to the apex court, SEBI said that despite a previous order by the court, the diversified conglomerate has not furnished all documents, pertaining to the two firms, in their custody to the regulator by Sep 10.

On Nov 30, the Sahara group had moved the Supreme Court against the order of the Securities Appellate Tribunal (SAT) which had dismissing its appeal against SEBI in the case.

Earlier 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 do so, the SEBI can attach properties and freeze bank accounts of the companies, the court had ruled.

The court had also directed the Subrata Roy-controlled group to hand over all documents submitted by the investors to SEBI in order to verify the genuineness of the investors.