Sahara likely to face music from other regulators too

On top of the the freezing of the bank accounts and attachment of the properties, Sahara also faces a contempt of court charge on which the court gave it four weeks' time on February 6 to explain why action should not be initiated against it.

The Sebi order comes after the hard rap it got from the Supreme Court on February 6 when the apex court asked the market regulator why it was not going ahead with freezing of accounts and attaching the properties as per its August 31, 2012, order.

Legal experts told FE that if Sahara is looking for any relief, it can only get from the SC. In fact, in a late evening statement on Wednesday, the company hinted at the same when it said: “...As regards the instalments to be deposited with Sebi as per the order of the Hon’ble Supreme Court, Sahara has filed interim application before the Hon’ble Supreme Court inter alia praying that Sahara be permitted to furnish security through a credible financial institution instead and in place of the payment of the balance instalments, since Sahara has already redeemed significant number of OFCD holders and any further payments to Sebi would amount to double payment. The said interim application is pending and is likely to come up next week.”

In its defence Sahara said: “Sebi's order

... contd.