Sahara likely to face music from other regulators too
Not only will the group face difficulty in running its day-to-day operations, but it would also not be able to raise money from the market. The immediate casualty could be its plans to open a retail chain, Q-Shop.
With Sebi cracking the whip, industry sources maintain that the group may face rough times at the hands of other regulators examining the manner in which Sahara made overseas acquisitions like the Grosvenor House hotel in London.
The reported findings of a secret intelligence report by the foreign financial intelligence unit, which indicates how the money raised through the OFCDs moved overseas in an unauthorised manner to fund the acquisition. However, the Sahara Group has strongly rebutted these charges.
According to Sandeep Parekh, founder, Finsec Law Advisors, there seems to be no further relief for the group. “Sebi's action is based out of a Supreme Court order which says that Sebi is supposed to attach bank accounts, properties, whatever is available. Beyond the Supreme Court there is only god to pray to. The Sebi order has kind of shown the mirror,” Parekh told a TV news channel.
According to him, Sahara is left with two alternatives: One, to submit
Be the first to comment.
