Subrata Roy's Sahara group reacts: Read statement

Written by FE Online | Updated: Mar 5 2014, 18:10pm hrs
Subrata RoySubrata Roy has been asked to submit a proposal for the refund of money to investors. AP
After an eventful day, Subrata Roy was sent to Tihar jail by Supreme Court today. Sahara group chief has been asked to submit a proposal for the refund of money to investors.

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Sahara group issues this statement in court:

BACK GROUND

It is humbly submitted that the Honble Supreme Court may graciously be pleased to consider Saharas proposal sympathetically and accept the same in the best interest of Saharas Crores of existing investors and to protect the livelihood of 12 lakhs workers/employees.

PROPOSAL OF SAHARAS

However, for the last 15 months or so, SEBI has been demanding more money though refunded only an amount of around Rs. 1 crore out of said amount of Rs.5120 crores which was given by Saharas. Hence, SEBI has balance amount of approximately Rs. 5619 cr. (including interest earned amount etc.)

1. Saharas propose to furnish bank guarantee/s for a total sum of Rs. 22,500 crores.

2. Immediately upon acceptance of the proposal of bank guarantee parallely, SEBI shall be entitled to proceed the Sale of properties of the titles already handed over to SEBI by Sahara.

3. Immediately as Saharas handed over the Bank Guarantee of Rs. 22500 crores to SEBI, the sale of the said Properties shall be stopped. The amount of monies collected by SEBI from the sale of the Properties till such date shall be refunded by SEBI to Saharas.

4. SEBI has in its orders of attachment dated 13rd February, 2013 contended that the documents submitted by Saharas to SEBI have been hopelessly mixed up. This is not correct and the same has been challenged by Saharas in the appeals filed before Securities Appellate Tribunal. However, Saharas offer to depute hundreds of competent workers to assist SEBI in collating the documents/ information and verification of the documents. So jointly, harmoniously we should work, this is necessary to honour the verdict of the Honble Supreme Court to find out absolutely clearly the possibilities of fictitious accounts amongst around 3 crores of investors.

5. Further, SEBI should be immediately directed to receive all the remaining documents which are lying with Saharas, which interalia comprises of original vouchers, original receipts and all other relevant documents. THOSE ARE THE ABSOLUTE PROOF OF ALL PAYMENTS TO ALL OFCDs EXCEPTING AROUND RS.2000 CRORES LEFT. Acceptance of these basic documents is critical and in absence of the said documents the Honble courts orders can not be effectively implemented.

6.During the verification of the documents submitted to SEBI( to be done in accordance with the directions of the Honble Supreme Court), SEBI finds any subscriber who is not genuine that is if they are fictitious accounts then Saharas undertake to deposit the amount attributable to such subscribers to the Government of India in cash through SEBI within a period of 30 days.

7.The Bank Guarantee/s so provided by Saharas shall be invoked only :

if (i) Saharas fail to deposit the amount as mentioned above within a period of 30 days, to the extent of the amount Saharas have failed to pay to the Government of India, as per clause 6 above; or (ii) Saharas fails to repay the existing OFCD holders.

8. All restrictions /attachments, imposed on the Companies / Firms of Sahara group and other individuals, vide order of attachment dated 13.02.2013 passed by SEBI and Order dated 08.05.2012, dated 17.07.2013, dated 28.10.2013 and 21.11.2013 passed by the Honble Supreme Court be withdrawn.

9. In cases where the SEBI has completed the verification as per the order of the Honble Supreme Court, the total principal value of the concerned bonds, together with the interest paid thereon shall be credited to the account of Saharas and the bank guarantee shall stand reduced to the extent of such verified amount.

10. Upon verification of fictitious accounts and making of the payments to the outstanding OFCD holders, SEBI shall (a) refund the excess amount, to Saharas; (b) deliver back the original bank guarantee to Sahara for cancellation/return the original title documents pertaining to the properties which are not sold.

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